Safaricom is reducing M-PESA “Send Money” Rates by up to 45% for more than 90% of Customer Transactions, effective 1st January, 2021.It also announced end of the waiver on free cash transfers below Ksh.1000 on January 1.
The move is aligned to directives by the Central Bank of Kenya (CBK) which required mobile money operators to submit new pricing structures that are reflective of new principles including transparency, fairness and affordability.
New costs of sending amounts between Ksh.501 and Ksh.1000 among M-Pesa customers is set to come down slightly from Ksh.15 to Ksh 12 while the cost of sending sums between Ksh.101 and Ksh.500 is set to shrink to Ksh.6 from a previous Ksh.11.
The lower charges are set to benefit lower value transaction as the telco largely retains fees of sending higher sums over its M-Pesa platform.
Nevertheless, Safaricom says the lower charges will be of benefit to the majority of its customers as the low value transactions represent 90 per cent of its transactions.
“These tariff reductions will affect more than 90 per cent of all customer transactions when sending money. The price cuts are permanent, effective from January 1, 2021 and will enable more than 26.8 million customers to continue enjoying lower costs whenever they send money,” said Safaricom CEO Peter Ndegwa.