CBK Moves to Cap Mobile Money Fees by More Than Half
The Central Bank of Kenya (CBK) is to cap fees on person-to-person mobile money transfers in a move aimed at making digital payments more affordable but one that will hurt revenues for Safaricom and Airtel.
Under the Kenya National Financial Inclusion Strategy 2025–2028, CBK wants to reduce the average cost of mobile money transactions from Sh23 in 2024 to Sh10 by 2028. The regulator says current charges are too high, with some transfers costing up to 6.9 percent of the transaction value – way above bank rates.
“Mobile money is the single most transformative tool for financial inclusion,” CBK noted in its strategy paper, saying high transaction fees, poor interoperability and limited product innovation are holding back progress.
Mobile money has been at the heart of Kenya’s economy, especially during the COVID-19 pandemic when the regulator temporarily waived fees for transfers under Sh1,000. That move saw active user numbers rise by 6.2 million, while monthly transaction volumes nearly tripled from 162 million in March 2020 to 440 million by December 2022.
Kenya has 47.7 million mobile money subscriptions, representing a penetration rate of 91 percent, according to the Communications Authority. Safaricom’s M-Pesa is the dominant player, accounting for over 90 percent of transactions. Personal transfers alone generate nearly 40 percent of M-Pesa’s revenues, so this will hurt the company’s earnings. Airtel Money will also feel the pinch.
Despite the industry’s profitability, CBK says long-term sustainability depends on fairer pricing and broader reach, especially for the underserved. The regulator has promised to work with Parliament and stakeholders to set transparent tariffs that balance consumer interests with telecoms’ commercial viability.
“Short-term profits must not come at the expense of affordable, inclusive services,” CBK said, saying the reforms are critical for deepening financial inclusion.
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CBK Moves to Cap Mobile Money Fees by More Than Half