Kenya’s MNOs waive fees for transfers below Kshs 1,000, raise transaction limits

Kenya mobile network operators (MNOs) – that is Safaricom, Airtel Kenya and Telkom – as well as companies and platforms that provide mobile payment services (or PSPs), have following a meeting with the Central Bank of Kenya (CBK), announces a set of measures aimed to facilitate increased use of mobile money transactions instead of cash.

While the immediate objective of the new measures is to reduce the risk of transmission of COVID-19 (Coronavirus) by handling banknotes, thy are also meant to reduce the overall use of cash in the economy.

The new emergency measures, which take effect from tonight, that is midnight March 16, 2020, will remain in place until June 30, 2020.

As part of the new measures, there will be no charge for mobile money transactions up to Kshs 1,000; while the transaction limit for mobile money has been increased to Kshs 150,000 with the daily limit for mobile money transactions is now increased to Kshs 300,000. The mobile money wallet limit has been increased to Kshs 300,000.

The monthly total limit for mobile money transactions has been eliminated while the current tariff for mobile money transactions for Kshs 70,000 will apply for transactions up to Kshs 150,000.

The payment service providers (or PSPs) and commercial banks have also been directed to eliminate charges for transfers between mobile money wallets and bank accounts.

On Sunday March 15, 2020, President Uhuru Kenyatta urged operators to explore ways of deepening mobile money usage to reduce the risk of spreading the Corona virus through the physical handling of cash. While issuing his update on the Coronavirus situation in Kenya, President Kenyatta had also directed that operators consider reducing the cost of using mobile money during the period of the outbreak in the country.

Already, the three MNOs, who handle the bulk of the mobile money transactions in the country, have all supported the move.

“In addition, the daily T-Kash limit per transaction increases from Kshs 70,000 to Kshs 150,000, with the daily sending limit being reviewed upwards from Kshs 140,000 to Kshs 300,000. More importantly, any transactions between Kshs 50,000 up to Kshs 300,000 will attract a rate of Kshs 100. All other fees remain unchanged,” Telkom stated.

“In partnership with the government, Airtel has set up a toll free line 719, where all customers can now access information and updates on the COVID-19. This will enable Kenyans to gain better understanding and knowledge on how to prevent and manage any suspected cases… We remain committed to working together with all key stakeholders in safeguarding the lives of all Kenyans,” said Airtel Kenya MD Prasanta Das Sarma in a statement.

According to the latest industry stats from regulator Communications Commission of Kenya (CA), the number of active mobile money subscriptions and agents stood at 31.2 million and 235,168 respectively for the period between July to September 2019. A total of 661.6 million transactions (sending and withdrawals) valued at over Kshs 1.7 trillion were made with 425.3 million mobile commerce transaction, meaning that Kshs 1.6 trillion was spent to purchase goods and services online during the quarter. Person-to-Person Transfers were valued at Kshs 665.0 billion.

Safaricom, via its MPESA platform, handled the bulk of the transactions through its vast agency network which serves millions of its MPESA subscribers.

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