The Central Bank of Kenya (CBK), has announced the recommence ment of charges for all transactions above 100 Kenyan Shillings that have been carried out via internal bank wallets that are connected to Savings and Credit Co-Operative Societies (SACCOs).
The internal banking wallets in this instance, has to do with wallets that are owned by banks and that aid the provision of mobile money services, as well as other financial services which often times also involve a third party technology provider.
A press release from the Central Bank of Kenya (CBK) made it known that the recommencement is needed so as to help maintain the successful operating and executing of services between Savings and Credit Co-Operative Societies (SACCOs) and banks which have so far relied on the use of mobile wallets for a substantially larger percentage of their transactions.
In the words of the Central Bank of Kenya (CBK), “A recurring concern has been that the viability of these services may be adversely affected in the current price regime, given the inability to cover the underlying costs. This is a significant risk for SACCOs and their extensive membership due to the lack of other alternatives to connect to the mobile money ecosystem.”
Furthermore, the recommencement of the transaction charges for transfers between mobile money wallets and banks in Kenya is expected to provide the needed capacity to further increase the connection options for savings societies, as well as credit societies.
The Central Bank of Kenya (CBK) will also be reviewing the transaction charges in line with the principles of transparency and disclosure, affordability, customer-centricity, choice and competition, and fairness and equity, which were announced on the 17th of December 2020.
In December 2020 the Central Bank of Kenya (CBK) announced the expiration of the implemented waivers for mobile money transaction charges for all transactions below 1,000 Kenyan Shillings. The transaction charges waivers had been introduced on the 16th of March 2020 to help ease the financial strains brought on by the Coronavirus pandemic’s impact on the economy.
The Central Bank of Kenya (CBK) has also suggested that it might review mobile money charges and tariffs. Said review will be implemented gradually.
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