Central Bank of Kenya has extended the time frame of the mobile money transactions emergency measures it effected in March this year to December 31, to combat the spread of the coronavirus.
In a statement, CBK says the measures, which include the elimination of charges on transactions of up to Sh1, 000, have been effective and will remain in force.
CBK said it had noted that the measures were timely and highly effective in facilitating official and personal transfers at a time of great need.
At the same time, the bank’s regulator said it saw a significant increase in the use of mobile money channels by individuals in both value and number of transactions, since the elimination of charges for transactions of Sh1, 000 and below.
Most of the increase has been in low-value transactions of Sh1, 000 or less, which accounts for over 80 percent of mobile money transactions.
Moreover, CBK said more than 1.6 million additional customers are now using mobile money channels.
“Against this backdrop, and pursuant to Regulation 43(2) of the National Payment System Regulations, 2014, CBK has determined that the wallet and transactions limits that were announced on March 16, 2020, will remain in force,” CBK said in the statement.
The move therefore means that there will be no charge for mobile money transactions of up to Sh1, 000.
The current tariff for transactions above Sh70, 000 will also remain.
“There will be no charge by Payment Service Providers (PSPs) and commercial banks
for transfers between mobile money wallets and bank accounts,” CBK said.