In March, the Central Bank of Kenya rolled out several measures to cushion locals from the adverse effects presented by the pandemic.
The first measure was to slash transaction costs on al mobile transactions below Ksh 1000. Secondly, the authority removed transaction fees on the withdrawal of money between mobile money wallets and bank accounts.
On June 24, the authority announced an extension to these measures. The new measures announced in March were to end on July 1st but have now been extended to December 31st.
In summary, the CBK said;
- There will be no charge for mobile money transactions up to Kshs 1000
- The current tariff for transactions above Kshs 70,000 will remain
- There will be no charge by Payment Service Providers (PSPs) and commercial banks for transfers between mobile money wallets and bank accounts.
Increased Mobile Money Usage and Uptake
Since the onset of the rules, the authority has reported a general increase in mobile money usage in the country. Transactions below Ksh 1000, referred to as low-value transactions experienced the most increase.
It’s no surprise, however, since, typically, these below Ksh 1000 band accounts for over 80 percent of all mobile money transactions in the country. The strengthening factor, in this case, was the transaction-less allure.
Additionally, the CBK says since the beginning of the rules, the number of mobile money users has increased by more than 1.6million.
For businesses, times have never been tough. The CBK reported a “marginal” decline in business-related transactions.
Featured image: Rosenfeld Media