Safaricom Has Been Losing Ksh 1.7 Billion Monthly Since Mid March

The giant telecommunications company in Kenya, Safaricom, has been losing an average of 1.7 billion shillings monthly since mid-march due to the M-PESA transaction charge waiver.

In mid-March, the Central Bank of Kenya directed banks and telcos to waive mobile transaction charges to help cushion Kenyans against the heat of Covid-19.

Telecommunications companies such as Safaricom were directed to waive transaction charges for amounts of 1000 shillings and below for a period of 90 days.

For 90 days, Kenyans have been sending 1000 shillings and below via M-PESA at zero charges. The 90-day-period elapsed last week.

Safaricom now says that it is waiting for further directions from the Central Bank of Kenya on whether the zero-rating of the transactions will be extended.

“We are still waiting for a response from the Central Bank. We do not know if they intend to extend,” said Safaricom.

M-PESA has been instrumental to millions of Kenyans who have used it to send and receive money for years. With the ongoing pandemic, Kenyans have been encouraged to go cashless and M-PESA has come in handy.

To help customers and businesses better themselves, Safaricom launched the M-PESA Business Till that is set to help businesses manage their finances while running their businesses.

The period for Kenyan commercial banks to waive transaction charges between mobile wallets has also elapsed. Kenya Bankers Association (KBA) says that its members will decide whether to extend the offer.

The Covid-19 pandemic has hit hard on millions of Kenyans. Research firm, InfoTrack, says that more than 64 percent of Kenyans are not able to pay rent due to the ongoing pandemic.

The research says millions of Kenyans are not working from home but they are at home because there are no jobs to go to. Millions have been fired and many others sent on indefinite unpaid leave.

Is there hope on the horizon?

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