The Central Bank of Kenya on Thursday, December 17 announced that the free transfer of Ksh1,000 and below between mobile money subscribers will come to an end on December 31, 2020.
In a press statement, the regulator said only Ksh100 and below won’t attract any transfer charges.
CBK, however, says that the transfer of money from mobile wallets to bank accounts will continue to be free of any movement fees.
“To facilitate the integration of Savings and Credit Societies (SACCOs) with the mobile money ecosystem, SACCOs regulated by the SACCO Societies Regulatory Authority (SASRA) may levy a charge for transfers between SACCO accounts and mobile money wallets,” said CBK in their Thursday statement.
CBK says the amount of money payment services providers charge on transfers will be subject to the regulator’s guidelines.
The country’s overall bank introduced free mobile money transfer of Ksh1,000 and below on March 16, 2020 — three days after Kenya announced her first COVID-19 case — to discourage the physical exchange of cash.