This archive report was first published on 24 June 2020.
On June 24, 2020, the Central Bank of Kenya (CBK) announced the extension of a waiver on Sh1000 mobile money transfers until the end of the year.
This move aims to promote cashless transactions in the wake of the COVID-19 pandemic, building on the initial announcement made on March 16, 2020.
As a result, mobile money users will continue to enjoy free transactions on transfers of up to Sh1000 until the end of the year.
Additionally, the current tariff for transactions above Sh70,000 will remain unchanged, and there will be no charge by payment service providers and commercial banks for transfers between mobile money wallets and bank accounts.
According to the CBK, the initial measures announced on March 16, 2020, have led to a significant increase in the use of mobile money channels by individuals, with a notable increase in low-value transactions of Sh1000 or less, which has helped cushion vulnerable households.
Moreover, more than 1.6 million additional customers are now using mobile money channels, while business-related transactions have declined marginally.
It's worth noting that M-Pesa, a popular mobile money service, charges Sh15 for transfers of up to Sh1,000 to registered users and Sh49 for unregistered users, as well as Sh28 for withdrawals.
