CBK Reintroduces Mobile Money To Bank Transfers Charges – Eagle News Feed

Governor of the Central Bank of KenyaPatrick Njoroge

Governor of the Central Bank of Kenya

Patrick Njoroge

The Central Bank of Kenya (CBK) Tuesday, December 6 reintroduced charges on transactions between mobile money wallets and bank accounts which had been waived on March 16, 2020.

The charges are set to be restored from January 1, 2023, and follow discussions and lobbying between the CBK, banks and payment service providers with the latter two groups pushing for the fees return.

The payment service providers (PSPs) and banks agreed to revise the maximum charges on the transactions following consultations with the CBK.

The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by an average of 61 percent while the inverse (mobile wallets to bank accounts) charges will fall by an average of 47 percent.

Tariffs for pay bills used to collect and disburse funds by businesses, companies and institutions such as schools and utilities will meanwhile be reduced by an average of 50 percent.

The charges levied by banks for bank-to-mobile money transactions will be reduced by a mean of 45 percent.

“The revised charges for bank-to-wallet and wallet-to-bank transactions will be announced by respective payment service providers (PSPs) and banks and will be effective from January 1, 2023,” CBK said in a statement.

CBK credited the waiver of the charges which was prompted by the onset of the COVID-19 pandemic with the expansion of the payments eco-system.

The number of Kenyans using mobile money increased by over 6.2 million while the monthly volume and value of person-to-person (P2P) transactions increased from 162 million transactions worth Sh234 billion to 440 million transactions valued at Sh399 billion.

The monthly volume and value of transactions between PSPs and banks meanwhile increased from 18 million transactions worth Sh157 billion to over 113 million transactions worth Sh800 billion.

“This outcome confirms that the mitigation measures were timely and effective, and resulted in significant benefits across the financial system. The resumption of revised charges is aimed at building on these gains, facilitate a transition towards sustainable growth of the mobile money ecosystem, and ensuring affordability of payment services for Kenyans,” the regulator said

Jay Ndungu

Jay is a computer scientist and journalist with a passion for the intersection of technology and society. He has a background in computer science, developing a deep understanding of the technical aspects of the industry, including programming languages and software development methodologies. Currently, He writes for Nairobi Times, covering a wide range of topics including technology, politics, sports, and entertainment. With his unique combination of technical knowledge and journalistic experience, Jay brings a unique perspective to the stories he covers, able to explain complex technical concepts in an easy-to-understand manner. His work is dedicated to bridge the gap between technology and society, and to make people more aware of the potential of technology to make the world a better place.

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