Safaricom PLC has lowered its M-Pesa transactions by 45% ahead of the end of the waiver on free cash transfers below KSh 1000 in January 2021.
The news transactions costs are in line with the recent directive by the Central Bank of Kenya (CBK) requiring mobile money operators to come up with new pricing structures based on new principles of transparency, fairness and affordability.
In a statement released on Tuesday, December 22, the telco said the cost of sending money between KSh 501 and KSh 1000 among M-Pesa customers will drop slightly from KSh15 to KSh 12 while the cost of sending amounts between KSh 101 and KSh 500 will come down to KSh 6 from the initial cost of KSh 11.
Safaricom, however, left the cost of withdrawals from M-Pesa agents as unchanged.
For instance, the cost of withdrawing KSh 1000 will remain at KSh 28.
The company also retained normal charges on sending huge amounts of money from one customer to another.
The maximum cost of transferring between KSh 50, 000 to KSh 150, 000 will be KSh 105 while withdrawal with cost KSh 300.
The telco CEO Peter Ndegwa argued most of the company’s customers regularly send small sums of money thus the decision to lower the costs of such transactions.
The new prices will be permanent and are estimated to benefit more than 28 million customers of the giant telco.
“The price cuts are permanent, effective from January 1, 2021 and will enable more than 26.8 million customers to continue enjoying lower costs whenever they send money,” Ndegwa.