he Central Bank of Kenya (CBK) is set to introduce caps on fees charged for person-to-person mobile money transfers, a move that could reshape the country’s digital payments landscape.
The initiative, part of the Kenya National Financial Inclusion Strategy 2025–2028, aims to reduce the average transaction cost from the current Sh23 in 2024 to just Sh10 by 2028.
Currently, mobile money charges can reach up to 6.9 percent of the transaction amount significantly higher than typical bank fees. This has limited growth in mobile money usage, with most Kenyans still relying mainly on basic services like cash transfers, while uptake of products such as digital credit, insurance, and savings remains low.
Safaricom’s M-Pesa continues to dominate the market, accounting for more than 90 percent of mobile money transactions, with nearly 40 percent of its revenues coming from personal transfers. The planned fee caps are therefore expected to pressure both Safaricom and Airtel Money, potentially reshaping their revenue models.
Despite this, CBK maintains that the move is necessary to make mobile money more affordable and inclusive. “Mobile money is the single most transformative tool for financial inclusion,” the regulator said, citing its role in connecting millions of Kenyans to formal financial systems since 2007.
Evidence of affordability’s impact came during the COVID-19 pandemic, when CBK temporarily waived transaction fees for amounts below Sh1,000. This led to a surge in active users by 6.2 million, while monthly transactions jumped from 162 million to 440 million.
Today, Kenya has 47.7 million mobile money subscriptions, representing a penetration rate of 91 percent. CBK plans to work with telecom operators and Parliament to ensure transparent pricing and sustainable growth, balancing commercial interests with broader access to digital financial services.
By reducing costs, CBK hopes to boost uptake, especially among underserved populations, and strengthen Kenya’s global reputation as a leader in mobile money innovation.
