Safaricom announces permanent tariff reductions for low-value MPESA transactions.
NAIROBI, 22ND DECEMBER 2020: Safaricom on Tuesday announced a 45 percent reduction in costs of transactions below Sh. 2,500. The new rates which will now be permanent is part of the telco’s efforts to cushion Kenyans from the adverse effects of COVID-19.
In March, Safaricom announced a temporary zero-rating of transactions which was to expire at the end of December 2020.
“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. This is in consideration of the expiry of the period for the zero-rated M-PESA transactions and the ongoing Covid-19 and economic circumstances,” said Safaricom CEO Peter Ndegwa in a statement released to media houses on Tuesday.
These tariff reductions which come into effect on 1st January 2020 are expected to affect more than 90 per cent of all customer transactions when sending money. It will now cost KES 6 to send between KES 101 and KES 500, down from KES 11. Transactions of between KES 1,501 and KES 2,500 will cost KES 32 down from KES 41.
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 maximum amount a customer can transact in a day or hold in their MPESA will be capped at Sh. 300,000.