This archive report was first published on 14 July 2020.
On July 14, 2020, the International Monetary Fund (IMF) gave its approval to the Central Bank of Kenya's (CBK) decision to waive fees for mobile money transactions of less than Sh1,000.
The move, which was announced by Governor Patrick Njoroge days after the country's first case of Covid-19 was reported on March 13, aimed to encourage a shift towards cashless transactions via mobile money by introducing incentives to lower costs and increase the limits on transactions for digital transactions.
According to the IMF, fintech, including mobile money, can help people and firms maintain and increase access to financial services during lockdowns and the reopening of businesses, given the growing preference for cashless and contactless transactions to mitigate the spread of the virus.
"Fintech, including mobile money, can help people and firms to maintain and increase access to financial services during lockdowns and the reopening of businesses, given growing preference for cashless and contactless transactions to mitigate the spread," read part of the report, The Promise of Fintech.
The CBK's measures, which also included increasing the daily limit for mobile money transactions to Sh150,000, were initially set to remain in place until the end of June but were later extended to the end of the year to help increase mobile money transactions.
