Safaricom slashes low value M-Pesa charges

Safaricom has announced new M-Pesa tariffs that will see a reduction in low value M-Pesa transaction fees by up to 45 per starting January 1, 2021.

The company’s chief executive officer Peter Ndegwa said it was in line with a deal agreed on with the Central Bank of Kenya (CBK) that ended free mobile money transactions of up to Sh1,000.

“These tariff reductions will affect more than 90 per cent of all customer transactions when sending money,” said Mr Ndegwa in a statement.

In the reviewed tariffs, it will now cost Sh6 to send between Sh101 and Sh500, down from Sh11 while transactions of between Sh1,501 and Sh2,500 will cost Sh32 down from Sh41.

All transactions of Sh100 and below will remain free.

The Safaricom CEO further disclosed that all M-Pesa customers will continue to enjoy free transactions between M-Pesa and bank accounts.

“The price cuts are permanent, effective from January 1, 2021 and will enable more than 26.8 million customers to continue enjoying lower costs whenever they send money,” Ndegwa noted.

Ndegwa said that the CBK principles on the Pricing of Mobile Money Services was instrumental in the decision taken to reduce the M-Pesa tariffs for lower value transaction bands.

The central bank rejected bankers’ push to reinstate fees on transfer of cash between accounts and mobile phone wallets, even as it ended free M-Pesa transactions.

“As guided by the Central Bank of Kenya and taking into account the Principles on the Pricing of Mobile Money Services, we have taken the decision to reduce our M-Pesa tariffs by up to 45 per cent for lower value transaction bands,” Ndegwa added.

The telecommunications company announced the new tariffs after CBK moved to end the waiver on free M-Pesa transactions below Sh1000.