This archive report was first published on 25 August 2021.
Kenyan banks are seeking to revive charges on mobile cash transfers, a move that could boost their non-interest income.
According to Central Bank of Kenya (CBK) data, the value of KCB mobile transactions, including lending, grew by 104 percent to hit Sh1.12 trillion at the end of June from Sh550 billion in the previous similar period.
However, revenue from these mobile transactions dropped 18 percent to Sh3.22 billion, highlighting the impact of continued fees waivers.
CBK introduced fee waivers in mid-March last year to help curb the Covid-19 pandemic by reducing handling of cash.
Equity Group last year estimated that banks lost Sh120 million per month due to the free transfers between them and wallets such as M-Pesa.
Banking transactions have increased significantly, with KCB mobile banking transactions rising by about 70 percent in the six-month period to June.
Joshua Oigara, KCB chief executive, said the lender is in talks with CBK and hopes for a deal that will either allow full or discounted charges by end of the year.
“Customers are getting more transactions digitised. We are working with CBK to get fees and commissions on these transactions,” Mr Oigara said.
“This is a good opportunity to look at the charges. I don’t see the charges going back to the levels they were before [the pandemic]. We see a discounted level of charges on the mobile transactions,” he added.
