CBK Reinstates Charges on Ksh1,000 M-Pesa Transactions
The Central Bank Kenya (CBK) on Thursday, December 17 reinstated M-Pesa charges for sending amounts of Ksh1,000 and below.
In a statement, CBK said it will allow the Payment Service Providers (PSPs) to introduce new charges on transactions above Sh100 by January 1, next year.
CBK however, stated there will be no charge for person-to-person transfers of up to Sh100 to any customer and network.
The regulator added that transfers between mobile money wallets and bank accounts will also remain free.
“CBK will allow the emergency measures to expire on December 31, 2020, and PSPs will introduce revised pricing structures from January 1, 2021,” CBK.
To facilitate the integration of Savings and Credit Societies (SACCOs) with the mobile money ecosystem, SACCOs regulated by the Sacco Societies Regulatory Authority (SASRA) may levy a charge for transfers between SACCO accounts and mobile money wallets.
CBK said it will oversee these charges in the context of the products that banks and PSPs offer to SACCOs.
“Going forward, PSPs will propose pricing structures that reflect the “Pricing Principles” that CBK has introduced. These “Principles” aim to support the development of an efficient, safe and stable payments and mobile money ecosystem where the customer and public interests are adequately protected,” CBK stated.
CBK will continue to monitor developments in the payments ecosystem and take any necessary actions.
On March 16, 2020, the Central Bank of Kenya (CBK) Governor Patrick Njoroge announced emergency measures to would see charges on mobile money transactions of sums of less than Ksh1,000 would be waived in what was aimed at curbing the spread of the viral disease through contact of physical cash.
The CBK also increased the limit for mobile money transactions to Ksh150,000.
These measures ran until June 30, 2020, and were extended until December 31, 2020, after a review.