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Bank-mobile money transfer to start attracting 20 percent fee From January 1, 2023

Bank-mobile money transfer to start attracting 20 percent fee beginning January 1, 2023, as per CBK announcement.

Beginning January 1, 2023, a 20% excise fee will apply to any transfers of money from bank accounts to mobile wallets like MPesa, Airtel Money, or T-Kash.

Several commercial banks have been alerting their clients via text messages of the Central Bank of Kenya’s instruction.

“Dear Customer, we would like to notify you that transactions from bank accounts to mobile money wallets will be charged effective 01/01/2023.

This follows a Central Bank of Kenya (CBK) announcement on the reintroduction of significantly reduced charges,” read a text message sent by a bank.

The Central Bank of Kenya (CBK) had on Tuesday, December 6, announced the return of charges on transactions between mobile money and bank accounts starting January 1, 2023.

The charges were suspended on March 16, 2020, three days after the Covid-19 pandemic was declared in the country.

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The waiving of the fees was to encourage the non-physical exchange of cash during payments in an effort to contain the spread of the contagious Covid-19.

“The resumption of revised charges is aimed at building on the gains on the financial system, facilitating a transition towards sustainable growth of the mobile money ecosystem, and ensuring affordability of payment services for Kenyans,” the CBK said.

According to CBK, transfers from bank accounts to mobile money will be reduced by up to 61 percent, while transactions from mobile money wallets to bank accounts will be lowered by up to 47 percent.

Transactions for PayBills (used by businesses, companies, and institutions to pay and collect funds) will be halved by 50 percent.

Charges for bank accounts to mobile money will also be reduced by 45 percent.

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