NAIROBI, Kenya – The Central Bank of Kenya (CBK) is preparing to introduce caps on fees charged for person-to-person mobile money transfers, in a move that could hit revenues for telecom giants Safaricom and Airtel even as it seeks to make digital payments more affordable.
The regulator says the decision stems from evidence that mobile money remains primarily a tool for basic transfers, with little uptake of advanced products such as digital loans, savings, or insurance.
It now wants to cut the average cost of a transaction from Sh23 in 2024 to just Sh10 by 2028, under the Kenya National Financial Inclusion Strategy 2025–2028.
“Mobile money is the single most transformative tool for financial inclusion,” CBK noted, but warned that high fees, limited interoperability, and inadequate financial products are stalling growth.
At present, charges on some transfers reach as high as 6.9 percent of the transaction value—well above what banks levy for retail transfers.
Safaricom’s M-Pesa dominates the industry, accounting for over 90 percent of transactions.
The CBK’s fee cap is expected to directly affect the platform’s earnings, since personal transfers make up nearly 40 percent of M-Pesa’s revenues. Airtel Money is also likely to feel the pinch.
Mobile money’s importance to Kenya’s economy was underscored during the COVID-19 pandemic, when the CBK temporarily scrapped fees on transactions under Sh1,000.
That waiver drove active users up by 6.2 million, while the monthly volume of transfers nearly tripled—from 162 million in March 2020 to 440 million by December 2022.
Today, Kenya boasts 47.7 million mobile money subscriptions—representing 91 percent penetration, according to the Communications Authority.
But CBK insists that pricing must be fairer if the sector is to sustain growth and deepen financial inclusion, especially among underserved communities.
The regulator plans to work with Parliament and industry players to set transparent tariffs, balancing the telecoms’ commercial interests with long-term accessibility for consumers.
“Short-term profits must not come at the expense of affordable, inclusive services,” CBK said, framing the upcoming reforms as key to ensuring mobile money’s continued role in expanding access to finance.
