The Central Bank of Kenya (CBK) has extended measures put in March to facilitate increased use of mobile money transactions in efforts to curb the spread of Covid-19 to December 2020. This is after the three month period that had originally been set elapsed mid this month.
In a statement, CBK noted that there was increased usage in mobile money transactions for Sh1,000 and below. This accounts for at least 80 percent of mobile money transactions and with the charges eliminated, it has helped cushion the most vulnerable in society from the economic crisis brought about by the pandemic.
“CBK notes that these measures were timely and highly effective in facilitating official and personal transfers at a time of great need. Further, CBK assesses that the increased wallet and transactions limits that were also announced have led to increased usage at higher amounts and greater convenience,” the statement read.
Read: Safaricom Lost Sh5.1 Billion In Foregone Revenue As Free M-Pesa Transactions For Sh1,000 Lapse
CBK says that there are an additional 1.6 million customers using mobile money channel, although business related transactions have reduced considerably.
“Against this backdrop, and pursuant to Regulation 43 (2) of the National Payment System Regulations, 2014, CBK has determined that the wallet and transaction limits that were announced on March 16, 2020, will remain in force” the statement further read.
During the extended period, there will be no charges for Mobile Money transaction of up to Sh1,000.
Also, the current tariff for transactions above Sh70,000 will remain and payment Service providers and Commercial Banks will not charge for transfers between mobile money wallets and bank accounts
CBK said it will continue to monitor the implementation of the emergency measures.
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