This archive report was first published on 7 July 2020.
On July 7, 2020, the Central Bank of Kenya made a decision that could cost Safaricom up to KES. 15 Billion. The Mobile Money giant had requested a limit of up to five-free-transactions per day, citing abuse by customers who'd split high-value transfers to avoid paying transaction fees.
According to Business Daily, Safaricom reported to the Central Bank that people were splitting high-value transfers of up to KES. 60,000 to escape paying a transaction fee of KES. 105. The telco also asked the Central Bank to lower the threshold of free transactions from the set KES. 1000 to KES. 500, claiming it would help reduce their losses of up to 1.7 Billion monthly.
However, both requests were denied. The Central Bank had earlier extended measures to help fight the spread of Covid-19 and facilitate personal transfers until December 31st. The regulator stated that the measures have been effective, with mobile money transactions increasing and over 1.5 Million new customers using mobile money.
