Safaricom eyes Kes1205 fees on half-a-million value transactions

Safaricom will charge about Kes1,205 to wealthy customers seeking to send half a million via their M-PESA mobile money wallets. The telco has announced it has received regulatory approval to increase its upper limit to Kes500,000 in tranches of its Kes150,000 that acts as the current upper limit.

This means customers will have to make at least four transactions to get to half a million costing Kes1205. This is the second time the regulator is stretching M-PESA transaction limits bringing the telco ever closer to larger value transactions that will allow it to compete effectively almost as a lender.

In May 2020, CBK gave Safaricom approval to double transaction limits from the Kes70,000 to Kes150,000 allowing customers to transact up to Kes300,000 and hold up to Kes300,000 in their M-PESA wallets.

“In addition to the higher account limit, M-PESA customers are also set to enjoy an increased daily transaction limit of Kes500,000 per day. The current per transaction limits of Kes150,000 will remain, however customers can make as many transactions up to the Kes500,000 daily limit” said Peter Ndegwa, CEO, Safaricom.

M-PESA account limits

Safaricom is set to increase M-PESA account limits to Kes500,000 following approval from the Central Bank of Kenya. The higher account limit will be effective from Tuesday 15th August 2023 for all M-PESA customers.

The move is set to be a boost for businesses in the country, especially SMEs, as the share of cashless transactions continues to rise.

In the last financial year to March 2023, more than 606,000 businesses were receiving payments through Lipa Na M-PESA, with a total of Kes1.625 trillion transacted in the 12 months.

“We appreciate the role that the Central Bank of Kenya has played by constantly providing guidance on innovations and protections that we have put in place to strengthen M-PESA’s adherence  to KYC, anti-money laundering and other financial regulations and safeguards. The increased account limits will provide customers and especially small businesses with increased convenience as the share of cashless transactions continues to rise,” Mr Ndegwa said.

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