CBK Has Officially Suspended Free Mobile Transfers

Digital Borrowers Have Six Months to Improve Their Credit Standing According to CBK

CBK has officially suspended free mobile transfers.

Safaricom and other telcos asked for the free mobile transactions to stop and their prayers have been answered. The Central Bank of Kenya (CBK) has officially suspended the zero-rating order for mobile money transactions under KES 1,000.

In case you’ve been sending your money in 100’s so that you can save money you will not enjoy the luxury of sending money for free. However, currently we’re waiting to see the changes CBK will make since the transaction fees will be adjusted.

Safaricom CEO Peter Ndegwa said:

“This has been a tough period for businesses and our customers and we committed ourselves to walk through this journey together. During this period, we took several initiatives to support our customers and the government to pull through this pandemic,”

It is not clear what the charges will be once they are revised but transfers under KES 100 will be free as of 2021. Additionally, mobile money-to-bank transactions are set to be free as well.

In its announcing statement, CBK wrote:

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, with the following elements:

  1. There will be no charge for person-to-person transfers of up to Ksh.100 to any customer and network.
  2. There will be no charges for transfers between mobile money wallets and bank accounts.
  3. To facilitate the integration of Savings and Credit Societies (SACCOs) with the mobile money ecosystem, SACCOs regulated by the Sacco Societies Regulatory Authority (SASRA) 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.
  4. Going forward, PSPs will propose pricing structures that reflect the “Pricing Principles” that CBK has introduced. These “Principles” aim to support the development of an efficient, safe, and stable payments and mobile money ecosystem where the customer and public interests are adequately protected. It is noted that the wallet and transaction 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.