In a landmark move set to revolutionize digital finance, the Central Bank of Kenya (CBK) has published a draft policy proposing a drastic reduction of mobile money transaction fees. The proposal aims to cut charges for services like M-Pesa, Airtel Money, and Telkom Kenya by up to 50%, potentially saving Kenyans billions of shillings annually.
The initiative, dubbed the “National Payments System (NPS)” regulations, seeks to make digital financial services more affordable and accessible, thereby further deepening financial inclusion across the country. The CBK argues that the current fee structures, largely unchanged for years, do not reflect the significant growth in transaction volumes and the resulting operational efficiencies. This move is expected to stimulate even more economic activity, especially among small-scale traders and low-income households who rely heavily on mobile money for daily transactions.
This proposed cut represents one of the most significant interventions in the mobile money market and is now open for public consultation. If implemented, it will mark a new era of affordable digital transactions for millions of Kenyans, reinforcing the country’s position as a global leader in fintech innovation.
