Kenyans using mobile money service M-Pesa for transfers below Ksh1,000 ($10) will now be required to pay zero transaction fees after telecoms major Safaricom waived charges on the fintech product on Monday.
This comes a day after President Uhuru Kenyatta asked banks and mobile money providers to consider reducing costs of transactions to allow customers to use cashless modes of payment as part of the measures to prevent the transmission of Covid-19, The EastAfrican reported.
Safaricom, owner of the mobile payment platform, said all person-to-person transactions below the mark will be free for the next 90 days (three months) for its about 27 million active subscribers every month. Prior to the move, transfer of cash below Ksh1,000 ($10) on the M-Pesa platform attracted between Ksh11 and Ksh15 in fees while it cost up to Ksh28 to withdraw from an M-Pesa agent.
“This means that from tomorrow morning (Tuesday), M-Pesa users will be able to send any amount below Ksh1,000 for free over the next 90 days,” said Michael Joseph, Safaricom CEO.
The decision also follows a meeting between Safaricom and Central Bank of Kenya governor Patrick Njoroge, together with other industry players. The dialogue was focused on the evolving situation around the coronavirus (Covid-19) pandemic.
Following the meeting, CBK approved the increase of daily M-Pesa transaction limits from the current KSh70,000 ($700) to KSh150,000 ($1,500) specifically to support small and micro business enterprises (SMEs), as reported by The East African.
In addition, Kenyans will be able to transfer up to Ksh300,000 ($3,000) up from the current limit of Ksh140,000 ($1,400) and hold up to Ksh300,000 ($3,000) in their M-Pesa wallets.
Mobile money is the leading mode of cashless payments in Kenya. Central Bank figures show that eight out of 10 cashless transactions are done on mobile phones. The widespread adoption of electronic transfer in the country is considered a huge advantage in the fight against Covid-19.
So far, three people have tested positive for the virus, with another 45 cases being monitored. Kenya has been taking drastic measures to contain the spread. Schools and institutions of higher learning are to be closed this week, while Kenyans have been urged to work from home.
