CBK Reintroduces Bank-to-mobile Money Transactions Jan 2023

Equity Bank "Tap and Go" Payments

The Central Bank of Kenya (CBK) has reintroduced charges on transactions between mobile money wallets and bank accounts effective January 1, 2023.

The charges were waived on March 16, 2020, prompted by the COVID-19 pandemic with the expansion of the payments ecosystem.

“The revised charges for bank-to-wallet and wallet-to-bank transactions will be announced by respective payment service providers (PSPs) and banks and will be effective from January 1, 2023,” the CBK stated.

What this means

“The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent, and mobile money wallet to bank account by on average up to 47 per cent,” the statement read. 

An average of 61 per cent will reduce the revised charges for transfers from bank accounts to mobile money wallets, while the inverse (mobile wallets to bank accounts) charges will fall by an average of 47 per cent.

On the other hand, an average of 50 per cent will reduce tariffs for pay bills used to collect and disburse funds.

Consequently, charges levied by banks for bank-to-mobile money transactions will be reduced by 45 per cent.

Alternative banking channels

Mobile banking:  services offered may include facilities to conduct bank and stock market transactions, administer accounts and access customized information. 

Mobile networks in Kenya offer mobile money services in the name of M-PESA by Safaricom, Orange Money by Orange,  and Airtel Money by Airtel. 

Agent Banking: According to the Central Bank of Kenya’s guidelines on agent banking, agency banking is then the provision of banking services by a third–party agency to customers on behalf of a licensed, prudentially – regulated financial institution, such as a bank or any other deposit-taking commercial bank.

Agency banking was made legal following an amendment to the Banking Act 2010.

A bank agent usually has an EMV-certified P.O.S. terminal to process withdrawals and deposits after the consumer swipes their EMV-certified bank debit or credit card.

These P.O.S. devices connect to the core banking system via a GPRS data connection using any of the major MNOs’ networks. Examples of Agent banking banks include Equity Group, Co-operative Bank, Family Bank Kenya, and Kenya Commercial Bank.

Internet Banking:  This web-based service allows you to transact online. It’s convenient, easy to use and allows you to do your banking securely via the Internet 24 hours a day, 7 days a week. One can pay for utilities, make bulk payments, and transfer cash from one account to another.

Automated teller machine (ATM): This electronic banking outlet allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs.

Cards: Debit cards are also known as bank cards, check cards or plastic cards. A debit card can be used while making purchases and withdrawing cash at Automated Teller Machines (ATMs) or at an agent merchant point of sale (POS). 

On the other hand, a credit card allows the user to spend money they currently do not possess in their account against a line of credit, which is the card’s credit limit. The card’s credit limit is agreed upon when the credit card user enters into a contract with the bank to be issued the card.



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