The return of bank-to-mobile charges has been met with disapproval with Kenyans taking to social media to lament the increased costs.

Central Bank of Kenya (CBK) announced in December last year, that bank- to-mobile money transaction charges, which had been halted in 2020 to encourage cashless transaction during the Covid-19 pandemic, would resume starting January 1, 2023.  The resumption was briefly suspended by the High Court before being okayed two weeks later.

The re-introduction has seen many customers complain that mobile money transaction charges have been hiked.

Cash transactions

Business Hub has, however, established most of the increase in transaction charges can be attributed to a return of the bank-to-mobile money charges. “The mobile money transaction charges and the government’s interest in connecting M-Pesa with KRA will force Kenyans to go back to cash transactions,” posted a Twitter user named @Waithash. “M-Pesa tills transaction charges are very steep. Many small businesses are opting out,” posted renowned economist, David Ndii. Buying goods via Lipa na M-Pesa, for instance is still free to the buyer while the seller is charged 0.5 per cent of the total amount transacted.