The Central Bank of Kenya (CBK) has announced the end of the waiver on mobile money transaction fees under KSh1,000 starting January 1, 2021.
According to CBK, only mobile transactions below KSh100 will be free, with service providers restoring sending fees.
Additionally, there will be no charges for transfers between mobile money wallets and bank accounts.
“To facilitate the integration of Savings and Credit Societies (SACCOs) with the mobile money ecosystem, SACCOs regulated by the Sacco Societies Regulatory Authority (SASRA) may levy a charge for transfers between SACCO accounts and mobile money wallets. CBK will oversee these charges in the context of the products that banks and PSPs offer to SACCOs,” reads the statement from CBK.
On March 16, CBK introduced the waiver to facilitate increased use of mobile money transactions instead of physical cash, as a measure to suppress the spread of COVID-19.
The measures were to run until June 30, 2020, but were extended to December 31, 2020.
Over this period, CBK says, there has been a significant increaseof mobile money usage.
“The monthly volume of person-to-person transactions increased by 87% between February and October 2020. Over this period the volume of transactions below KSh1,000 increased by 114%, while 2.8 million additional customers are using mobile money,” says the CBK.