Why Your Mobile Banking Will Become Expensive Again

File image of Kenyan banknotes
File image of Kenyan banknotes
File

Kenyans will start paying again to transfer money from their bank accounts to mobile money wallets should the Central Bank of Kenya approve a request by lenders.

Banks have petitioned the CBK to reinstate the applicable transfer charges, ending a freeze order that was meant to cushion Kenyans from the effects of the Covid-19 pandemic.

The lenders, in their petition, argue that an end to the freeze of charges will see them increase non-interest income.

CBK Governor Patrick Njoroge speaking at the MPC May Conference
CBK Governor Patrick Njoroge during the May MPC Conference. PHOTO: TWITTER

Bankers are hopeful that their prayer to revert to full-transaction fee and removal of discounted charges will be heard and the changes instituted by the end of the year.

“Customers are getting more transactions digitised. We are working with CBK to get fees and commissions on these transactions,” stated the Chief Executive of one of the commercial banks.

However, he added that the charges would not go back to the pre-pandemic rates. Before the relief period, transfer fees charged by banks ranged between Ksh30 and Ksh197.

In the wake of the frozen transaction costs, banks say that they have lost revenue amounting to millions due to free transfers between them and mobile money wallets.

One bank reported losing Ksh120 million per month.

The fee waivers were introduced mid-March last year alongside mobile money cash transfers of Ksh1,000 and below to cushion Kenyans during the pandemic.

The mobile money transfers for the amounts below the Ksh1,000 cap were, however, reinstated in April this year.

In addition, CBK increased the mobile money transaction limits from Ksh150,000 per day to Ksh300,000.

The Central Bank Of Kenya
The Central Bank Of Kenya
Kenyans.co.ke