Safaricom has announced that it will reduce charges for money transfers below Ksh. 2,500 on its mobile money platform, M-PESA, effective 1st January 2021. Charges for money transfers over Ksh. 2,500 will remain the same as will withdrawal charges.
Safaricom has earlier in the year temporarily suspended all charges on money transfers for amounts below Ksh. 1,000 as part of the measures to help Kenyans survive the COVID-19 pandemic. This is set to expire on 1st January 2021.
It will now cost Ksh. 6 to send between Ksh. 101 and Ksh. 500, down from Ksh. 11 previously. Transactions of between Ksh. 1,501 and Ksh. 2,500 will cost Ksh. 32 down from Ksh. 41. All transactions of Ksh. 100 and below will remain free. In addition, all M-PESA customers will continue to enjoy free transactions between M-PESA and bank accounts.
The new charges by Safaricom will equally apply to transactions for micro-Businesses under our new Pochi La Biashara service. They will also apply for Lipa Na M-PESA businesses using the transacting till to make payments.
The maximum amounts that customers can hold in their accounts will be Ksh. 300,000 and the maximum amounts they can send is Ksh. 300,000. These amounts were increased during the COVID-19 pandemic and it looks like it is here to stay.
The company apparently took this decision after the Central Bank of Kenya (CBK) released guiding principles on pricing issues for the sector.
The new M-PESA charges for money transfers effective 1st January 2021 will be as follows: