This archive report was first published on 24 June 2020.
As the country continues to grapple with the COVID-19 pandemic, the Central Bank of Kenya (CBK) has taken steps to facilitate mobile money transactions. In a recent announcement, the regulator extended the zero charges on mobile transactions exceeding Sh70,000 until December.
This move is aimed at encouraging the use of mobile money transactions, which have seen a significant increase since the measures were introduced in March. According to the CBK, the increase was mainly in low-value transactions of Sh1,000 and below, accounting for nearly 80% of mobile money transactions.
CBK Governor appreciated the removal of such charges, stating that it has cushioned the vulnerable in society. More than 1.6 million customers began using mobile money transactions, with the measures being timely and highly effective in facilitating official and personal transfers.
However, business-related transactions have recorded negative outcomes. The increased preference for mobile wallets and transactions limits has resulted in increased usage at higher amounts and greater convenience.
CBK noted that since the measures were introduced, there has been a significant increase in the use of mobile money transactions, with the majority being low-value transactions.
