Mobile money users will no longer enjoy free transfer of Ksh1000 or less starting January 2021.
The Central Bank of Kenya (CBK) had in March 16 waivered fees charged on transactions on transfer of Sh1000. This followed the regulator’s decision to increase use of mobile money transactions instead of cash to curb the spread of COVID- 19.
However, the CBK has now rescinded the decision but has maintained free sending fees for transactions below Sh100.
“Following consultations with Payment Service Providers (PSPs), CBK will allow the emergency measures to expire on December 31, 2020,” CBK said in a statement.
Commercial banks will nevertheless continue wavering transfer fees for transactions between mobile wallets and accounts.
The CBK’s waivers saw a significant increase in the use of mobile money in the country.
“Most of the increase was in low-value transactions of Sh1000 or less which has helped cushion most vulnerable households,” CBK said in a previous statement.
“Moreover, more than 1.6 million additional customers are now using mobile money channels. However business-related transactions have declined marginally.”