Why Kenya’s Central Bank Aims to Drastically Cut Mobile Money Transfer Fees
Kenya, a global pioneer in mobile money, is on the cusp of a significant shift as the Central Bank of Kenya (CBK) moves to substantially reduce the costs associated with sending money via leading platforms like M-Pesa and Airtel Money. This ambitious plan is driven by the conviction that current high transaction fees are stifling innovation and impeding the next critical phase of financial inclusion within this highly advanced African market. The CBK believes that by making mobile money more affordable, millions more can actively participate in the digital economy, unlocking new growth avenues for individuals and the nation.
The Strategic Push for Deeper Financial Inclusion and Innovation
The CBK’s strategy to cap person-to-person (P2P) transfer charges forms a core component of its comprehensive 2025–2028 National Financial Inclusion Strategy. The regulator has set a clear target: to slash the average mobile money transaction cost from KES 23 (approximately $0.18) in 2024 to an ambitious KES 10 ($0.078) by 2028. This significant reduction is not merely about saving users a few shillings; it’s a strategic intervention designed to bring millions of low-income Kenyans into the formal digital financial ecosystem. Critically, the CBK notes that despite Kenya’s mobile money system handling record transaction volumes, there are “signs of plateauing growth in mobile money access and usage.” This slowdown indicates that while basic P2P transfers remain popular, the uptake of more sophisticated financial products—such as digital credit, insurance, or savings—has been limited. By lowering the entry barrier of transfer fees, the CBK expects to stimulate the adoption of these advanced offerings, fostering a more robust and dynamic mobile money landscape beyond its foundational services.
Ultimately, the Central Bank of Kenya’s bold move to cut mobile money fees is a forward-looking strategy. It aims to re-energize an already sophisticated market, ensuring that financial inclusion continues its upward trajectory and that innovation can flourish. By making digital transactions more accessible and affordable for everyone, Kenya hopes to unlock the full potential of its digital economy, driving broader economic empowerment and securing its position as a leader in African fintech development.
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