Safaricom reduces M-PESA tariffs by up to 45% for lower value transaction bands

As guided by the Central Bank of Kenya and taking into account the Principles on the Pricing of Mobile Money Services, Safaricom has taken the decision to reduce its M-PESA tariffs by up to 45% for lower value transaction bands. This is in consideration of the expiry of the period for the zero-rated M-PESA transactions and the ongoing Covid-19 and economic circumstances.

“As part of different measures to help the country better weather the Covid-19 Pandemic, we announced the temporary zero-rating of M-PESA transactions in March… Our regulator, the Central Bank of Kenya under the leadership of Dr. Patrick Njoroge has been instrumental in the formulation of this and other measures across the financial sector which have resulted in significant gains in the form of the ongoing economic recovery,” said Peter Ndegwa, CEO, Safaricom in a statement.

These tariff reductions will affect more than 90 percent of all customer transactions when sending money. It will now cost Kshs 6 to send between Kshs 101 and Kshs 500, down from Kshs 11. Transactions of between Kshs 1,501 and Kshs 2,500 will cost Kshs 32 down from Kshs 41.

All transactions of Kshs 100 and below will remain free. In addition, all M-PESA customers will continue to enjoy free transactions between M-PESA and bank accounts.

The price cuts are permanent, effective January 1, 2021 and will enable the telco’s more than 26.8 million customers to continue enjoying lower costs whenever they send money.

Safaricom’s new, reduced tariffs will equally apply to transactions for micro-businesses under the telco’s new Pochi La Biashara service, and for Lipa Na M-PESA businesses using the Transacting Till to make payments.

Maximum Amount Customer Can Transact Daily Maximum Amount Customer Can Hold in M-PESA
300,000 300,000

The new M-PESA Tariffs will be as below:

Send Money
Min Max Fee
0 49 0
50 100 0
101 500 6
501 1000 12
1001 1500 22
1501 2500 32
2501 3500 51
3501 5000 55
5001 7500 75
7501 10000 87
10001 15000 97
15001 20000 102
20001 25000 105
25001 30000 105
30001 35000 105
35001 40000 105
40001 45000 105
45001 50000 105
50001 70000 105
70001 150,000 105

Just like Safaricom, Airtel Kenya has announced that its customers will be able to send up to Kshs 100 free of charge to any subscriber or network from January 1, 2021.

As per the guiding principles on pricing issues by CBK on December 17, 2020, Airtel has amended its pricing for person to person transfers and Airtel Money wallet to bank.

“All Airtel Money customers can transfer without any charges up to Kshs 100 to any customers and network with no daily limit to the number of such transactions. Additionally, all transactions from Airtel Money wallets to customers’ bank accounts will be free of any charge,” noted Prasanta Das Sarma, the MD, Airtel Kenya.

“Airtel Kenya believes that these new measures will help Kenyans to manage better the economic shocks presented by the pandemic and will help in maintaining the growth of cashless transactions.”


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