This archive report was first published on 22 June 2020.
Published on June 22, 2020, the waiver on mobile money transaction fees under Sh1,000 has lapsed, marking a significant shift in the financial landscape of Kenya.
The Central Bank of Kenya (CBK) had introduced the waiver as part of efforts to mitigate the economic impact of the Coronavirus pandemic. The move aimed to reduce the handling of cash and the attendant risk of Covid-19 transmission.
According to Safaricom, the company that owns M-Pesa, the waiver has resulted in a significant loss of revenue. The company has reportedly lost an average of Sh1.7 billion monthly since mid-March.
Commercial banks, including those that are members of the Kenya Bankers Association (KBA), had also removed charges for customers moving money between their mobile wallets and bank accounts. However, the KBA has stated that its members will decide on the free offer.
"We are still waiting for a response from the Central Bank, we do not know if they intend to extend," Safaricom said.
CBK did not respond to the Business Daily's questions on the fees waiver. However, data from the regulator shows that the daily average mobile phone money transactions of less than Sh1,000 grew 83 percent to Sh1.98 billion daily between April 20 and May 10.
