CBK ponders amending pricing on mobile money transfers

By Steve Umidha

Mobile money users will continue enjoying the free transactions on transfer of Sh1000 up to the end of the year, but financial industry players will consider introducing revised pricing structures for such transfers from January 1.

The Central Bank of Kenya said today while extending the benefits which were first announced on March 16 to promote cashless transaction in the wake of COVID-19 pandemic, that it will introduce new pricing models to conform with the current financial needs by Kenyans.

“CBK has reassessed the emergency measures with the objective of consolidating the gains made so far and also facilitate a transition towards sustainable growth of the mobile money ecosystem. Following consultations with Payment Service Providers (PSPs), CBK will allow the emergency measures to expire on December 31, 2020, and PSPs will introduce revised pricing structures from January 1, 2021,” the regulator said in a statement.

CBK has also proposed abolishment of charges for transfers between mobile money wallets and bank accounts as well as facilitate the integration of Savings and Credit Societies (SACCOs) with the mobile money ecosystem, SACCOs regulated by the Sacco Societies Regulatory Authority (SASRA) which may levy a charge for transfers between SACCO accounts and mobile money wallets.

“CBK will oversee these charges in the context of the products that banks and PSPs offer to SACCOs,” it said.

The bank in March 16 announced measures to facilitate increased use of mobile money transactions instead of cash, in the context of COVID-19 pandemic a significant increase in the use of mobile money channels by individuals in both value and number of transactions has been realized.

“It is noted that the wallet and transactions limits that were announced on March 16, 2020, will remain in force as was communicated earlier. CBK will continue to monitor developments in the payments ecosystem and take any necessary actions,” a statement by the bank reads, adding that an implementation will be carried on a gradual basis.
“CBK will be periodically engaging PSPs to ensure alignment, identify and promote best practice in implementation.”