Tag: mpesa news

CBK Set To Reduce M-Pesa Transaction Costs By Half

Posted on by Dennis Elnino

The Central Bank of Kenya (CBK) has outlined an ambitious strategy to drastically reduce the average cost of mobile money transactions in the coming years, aiming to cut fees by more than half. This push is part of a broader regulatory effort to spur the next wave of financial inclusion, moving beyond basic money transfers and addressing concerns that current high costs are stifling innovation.

While the phrase “reduce M-Pesa transactions by half” might suggest a cut in transaction volumes, the regulator’s focus is squarely on cost reduction, with the goal of making digital finance more affordable for all Kenyans.

Strategy to Reduce Average Transaction Fee to Ksh 10

Under its 2025–2028 National Financial Inclusion Strategy, the CBK is targeting a significant drop in the average cost of Person-to-Person (P2P) transfers.

  • Current Average Cost: Approximately Ksh 23 per transaction (in 2024).
  • CBK’s Target: To reduce the average cost to Ksh 10 by 2028.

The regulator argues that despite Kenya’s mobile money system processing massive volumes—an estimated Ksh 21 billion daily in 2024—the growth in new user adoption and the uptake of advanced financial services like digital credit, insurance, and savings has begun to plateau.

The high fees charged by mobile money operators, primarily M-Pesa and Airtel Money, are cited by the CBK as a major barrier preventing millions of low-income users from fully participating in the digital economy. The CBK believes that making costs proportional to the low value of many ‘public good’ related payments is crucial for sustained growth.

Addressing Market Dominance and Interoperability

This regulatory push comes amidst long-standing concerns regarding the dominance of Safaricom’s M-Pesa, which accounts for nearly half of the telco’s service revenue.
The ultimate outcome of the CBK’s plan will require legislative support to be enacted, setting the stage for a major regulatory battle between the government’s push for consumer affordability and the commercial interests of the telecommunication giants.

Surviving Day One of the Nationwide Curfew: How many more till we slay the Covid-19 pandemic?

Posted on by Kibaki Muthamia

If we had to tentatively pigeonhole families by grades of general temperament, which one is your family bound to fall in?

The loud and happy? The silent and melancholy? The academics and intellectuals? The perennial party animals? The religious faithful’s?

Well, my family boasts of an eclectic medley of those traits. The good thing, and perhaps the fabric that keeps this unit afloat, is the fact that life hardly has us together.

Father is laid back, and not good at chit chat. With the right crowd – read, colleagues from work – he’d come alive. But then, the fluctuating prices of crude oil and its effects on the world economies isn’t everyone’s cup of tea. He works in the energy sector. At the dinner table, father is content to listen to our chatter.

He’s used to missing most family milestones and important holidays. Though he keeps tabs on our schooling, he’d hardly get past the quarterly term reports. Duty first. A man’s duty is to provide.

On the other hand, mother is the family’s Supreme Leader. The Captain of this ship. She keeps the discipline, or, rather, lack of. She has everything on her fingertips – birthdays, school days, medical appointments, et al. On her personality, she thrives on chit chat. She glows and bubbles when life gifts her with an avid listener. Something that hardly happens on the domestic front.

My twin brother is a lot like me. We’re in the same college, though pursuing different courses. We are on indefinite holiday after campus riots broke out over a comrade’s death a few weeks ago. Did you see the infamous Meru Technical College student who took off in a police truck, sirens blaring? That’s my brother. He’s now a celeb of sorts back in campus.

However, no one had foreseen the effects of the just-declared dusk to dawn curfew.

Father is in a foul mood. He lives for work, and hadn’t expected to be home for an unknown period. His company has had to scale down operations. To make matters worse, some inconsiderate relative had sent him clips of the campus riot, with his son commandeering the police truck. They haven’t spoken since.

But, man, the tension at the living room is almost tangible. What do we talk about? What do we watch on TV? The remote – is it proper to hoard the present day symbol of household authority in the presence of your father? It’s his TV, after all. Thankfully, he seems content poring over old cryptic puzzles.

My brother is keen on making himself as small as possible. He’s glued on his phone, and jumps every time father shifts in his recliner. The police truck ghost shall hang over his head for a long time. To pass time, I help in the kitchen, and no matter how slow we take it, dinner is served early.

Mother leads the grace, and watches everyone make a serving. Then everyone digs in, silent.

After a while, father mumbles something about being full, and starts upstairs. It seem like that’s the cue brother been waiting for. He shuffles off to his room. Mother looks sadly at me, “After all we did today, and they ain’t eating?”

Earlier today, we had spent time at the market, shopping for vegetables. It had been hectic, with hand washing points at every stall. More interesting, none of the women tending the stalls had wanted cash. Everyone asked us to send the payments from M-Pesa straight to their Co-op Bank accounts. Its risky handling cash, as the Covid-19 may be passed on thus.

We didn’t mind, as it’s free. No charges.

“Don’t worry, mum. They’ll be fine tomorrow. It’s been a while since we’ve all been together”, I tell her.

This curfew, so hard on Day 1 – can it end already!