New M-Pesa Charges Effective January 1, 2021

Kenya’s telecommunications giant Safaricom has reduced M-Pesa transaction charges by up to 45 percent with those transactions 100 shillings and below doing it free of charge.

“As guided by the Central Bank of Kenya and taking into account the Principles on the Pricing of Mobile Money Services, we have taken the decision to reduce our M-PESA tariffs by up to 45% for lower value transaction bands,” said Safaricom in a statement.

In March, the Central Bank of Kenya had directed telcos to zero-rate the transaction of 1,000 shillings and below. The waiver, according to CBK will be coming to an end in January 2021.

The new tariffs, according to Safaricom, will affect more than 90 percent of all customer transactions when sending money.

It will now cost 6 shillings to send between 101 shillings and 500 shillings, down from 11 shillings. Transactions between 1,501 shillings and 2,500 shillings will cost 32 shillings down from 41 shillings.

All transactions of KES 100 and below will remain free. In addition, all M-PESA customers will continue to enjoy free transactions between M-PESA and bank accounts.

The price cuts are permanent, effective 1st January 2021, and will enable the more than 26.8 million customers to continue enjoying lower costs whenever they send money.

“Our new, reduced tariffs will equally apply to transactions for micro-Businesses under our new Pochi La Biashara service, and for Lipa Na M-PESA businesses using the Transacting Till to make payments,” said Safaricom in a statement.