The Central Bank of Kenya (CBK) has extended THE free mobile money transactions below 1,000 shillings to December 2020. This will help promote cashless payments due to the COVID-19 pandemic crunch.
The initial waiver was set to lapse on June 30th having been implemented mid-March. Customers will enjoy free mobile money transactions until the end of the year.
CBK and mobile money service providers agreed to waive fees charged on transactions not exceeding Sh1,000 in March in the onset of the pandemic. This was in order to encourage cashless transactions to flatten the curve of spreading the virus. The extension follows significant growth in mobile money transactions since they were waived.
“CBK notes that the measures were timely and highly effective in facilitating official and personal transfers at a time of great need,” CBK said in a statement.
The 0-1000Sh transactions which account to about 80 per cent of mobile money transactions. The waiver has helped about 1.6 million additional customers who are now actively using mobile channels.
“Most of the increase was in low-value transactions of 1,000 shillings or less. This band accounts for over 80 per cent of mobile money transactions and charges were eliminated, which has helped cushion the most vulnerable households,” the apex bank said in a statement.
Additionally, the CBK assesses that the increased wallet and transaction limits have led to increased usage at higher amounts and greater convenience.
CBK has retained the current tariff of mobile-money transactions above Sh70,000. And extended the waiver on fees charged by payment service providers (PSPs) and commercial banks for transfers between mobile money wallets and bank accounts.