Safaricom’s M-Pesa and Airtel Money face reduced profit margins in the new proposed regulations by the Central Bank of Kenya (CBK). Kenyans rely on M-Pesa and Airtel Money to make transactions. This is under the CBK’s policy to cap the cost of person-to-person mobile money transactions. The Kenya National Financial Inclusion Strategy 2025-2028 seeks to lower mobile money users’ fees from an average of KSh 23 to KSh 10. The banking regulator noted that high transaction costs are hindering access to affordable financial products. CBK revokes Bonto Kenya money transfer’s licence as fintech shuts down “Recent data shows signs of plateauing growth in mobile money access and usage. Most users still rely primarily on basic services like person-to-person transfers, with limited uptake of advanced offerings such as digital credit, insurance, or savings. This is attributed to issues such as limited interoperability, high transaction costs, low financial literacy, and product designs that do not reflect the realities of underserved groups,” CBK stated. How many mobile money accounts are registered in Kenya?
The CBK revealed that as of December 2024, there were over 381,000 active agents and 82.4 million registered mobile money accounts. In December alone, the accounts processed more than KSh 309 billion cash-in transactions and KSh 753 billion cash-out transactions. “Additional infrastructure included 2,289 ATMs, 48,653 POS machines, and 12.9 million cardholders (across prepaid, debit and credit cards),” it disclosed. Kenyans at a mobile money shop. Photo: Simon Maina. Source: Getty Images Why CBK wants to cap M-Pesa, Airtel fees CBK revealed that during the COVID-19 pandemic, under CBK’s guidance, mobile money providers waived fees for M-Pesa transactions below KSh 1,000 and introduced other customer-friendly changes.
New report shows 4m Kenyans were denied mobile loans amid rising default rates CBK raises KSh 61.4b loans on high demand for reopened 20- and 25-year Treasury bonds “These measures led to a 97% increase in the value of M-Pesa transactions between October and December 2020,” it highlighted. The regulator noted that despite high mobile money usage, growth has stagnated in rural and low-income areas. “Rural areas face infrastructure constraints, while barriers like device ownership, digital skills gaps, and socio-cultural limitations continue to hinder women’s full participation in the digital economy. These gaps highlight the need for targeted and coordinated efforts to deepen usage and address exclusion within the ecosystem,” it added. What are the new M-Pesa changes? In January 2025, Safaricom announced changes to M-Pesa transaction fees, including sending and withdrawal fees.
A transfer of KSh 50 to KSh 100 remains free, while the withdrawal fee increased to KSh 11. M-Pesa users now pay KSh 29 instead of KSh 28 for withdrawals between KSh 101 and KSh 2,500. Kenyans withdrawing between KSh 50,001 and KSh 500,000 are paying KSh 309. READ ALSO Kenya newspapers review: United Opposition lags behind as William Ruto hits the ground Kenyan investors rush to buy Treasury Bills amid falling lending rates What is Fuliza Biashara? Requirements, terms, and loan limits Additionally, the top mobile money service provider increased the daily M-Pesa transaction value to KSh 500,000.
Source: TUKO.co.ke
