Safaricom lowers M-Pesa tariff transactions by Half in a bid to facilitate money circulation and improve the business.
Telco giant and mobile service provider, Safaricom, announced that it will reduce the charges levied on Paybill transactions by half.
Chief Executive Officer Peter Ndegwa stated in a statement on Thursday, December 15, that the modifications will impact bank-to-consumer and customer-to-business transactions.
According to Ndegwa, the action is intended to ease money circulation and enhance the nation’s economic climate.
“We resolved to reduce significantly our pay bill and business-to-customer tariffs in a continued support towards stimulating growth and the economy.
“This reaffirms our commitment to support all our customers and enable them cost-effectively get along with their lives, especially during these hard economic times,” the CEO stated.
Notably, the majority of the fee reductions will apply to consumers who pay for social amenities, such as medical and school expenses as well as water and electricity bills.
Bank-to-mobile money transfers were reduced by 61%, while clients who deposit money directly into their banks will save 47%.
Under-Ksh100 transactions will continue to be rated as zero. The new tariffs will go into effect on January 1st, 2023, on Sunday.
The reduction of charges will provide further relief to Kenyans after the Central Bank of Kenya (CBK) governor Patrick Njoroge ordered banks to trim fees levied on money moving into and out of accounts.
Njoroge explained that the move will facilitate the emergence of a payments ecosystem that works for and with Kenyans.
Despite the nation enjoying free mobile transactions earlier, he explained that the number of transactions had increased over the period and that the economy had stabilized.
In April, a group of the country’s top commercial banks had written to CBK asking it to reinstate charges citing financial loss.