Bank to M-Pesa Fees: I&M First to Scrap Charges – Business Today Kenya

[Photo/ Kenyan Wallstreet]
[Photo/ Kenyan Wallstreet]

I&M Bank has become the first lender in the country to scrap fees on transfers between bank and mobile money accounts. The charges were reintroduced two months ago, after being stopped for two years as part of the country’s response to the Covid-19 pandemic – to encourage cashless transactions.

The move by I&M took effect on Wednesday, February 15th. The waiver, the bank stated, was based on feedback from customers and internal research.

The reintroduction of the fees by all major lenders following a directive from the Central  Bank of Kenya (CBK) in January had fueled widespread discontent among customers of the country’s biggest banks, even as analysts predicted that it would drive an increased preference for cash transactions.

“Adoption of digital payment methods is making life more convenient and allowing people to move faster,” the bank noted.

Highlighting the company’s investments in digital banking products in recent years, I&M general manager for digital business Michael Mwangi stated that the action was also intended to spur increased uptake of its digital products.

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“We look forward to seeing these numbers grow with digital transactions gaining favour among our digitally active customers,” Mwangi stated.

He further cited the economic downturn which has seen food and fuel prices rise in recent months, noting that scrapping the fees would help cushion its customers.

“We believe this move will offer new and existing customers a huge relief during tough economic times and encourage more customers to transact on mobile,” said Mr Mwangi.

“As part of our approach to service delivery, recent customer feedback showed that as much as our transaction rates are favourable, there was an opportunity to review our policies on bank to mobile money wallet charges for the digitally active customer.”

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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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