This archive report was first published on 24 June 2020.
On June 24, 2020, the Central Bank of Kenya (CBK) announced that it would extend the free mobile money and bank transfer limits, initially introduced in March 2020, until December 31, 2020.
The measures, aimed at promoting the use of mobile money instead of cash during the COVID-19 pandemic, include no charges for mobile money transfers below KSh 1,000 and no charges by payment service providers and commercial banks for transfers between mobile money wallets and bank accounts.
CBK noted that there has been a significant increase in the value and number of transactions on mobile money channels, with most of the increase being in low-value transactions of KSh 1000 or less, accounting for over 80% of mobile money transfers.
According to CBK, more than 1.6 million additional customers are now using mobile money channels, while business-related transactions have declined marginally.
CBK's decision to extend the free mobile money and bank transfer limits is in line with Regulation 43(2) of the National Payment System Regulations, 2014.
