Safaricom Cuts MPESA Transaction Charges by nearly Half-See New Charges

Safaricom Cuts MPESA Transaction Charges by nearly Half-See New Charges

Safaricom has announced a major change to MPESA transaction charges and tariffs. Effective 1st January 2021, Mpesa transaction charges will be reduced by upto 45%.

“As guided by the Central Bank of Kenya and taking into account the Principles on the pricing of mobile money services, we have taken the decision to reduce our MPESA tarrifs by upto 45% for lower value transaction bands,” the company said in the notice.

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According to safaricom, these tariff reductions will affect more than 90% of all customer transactions when sending money. For instance, it will cost Ksh. 6 to send between Ksh. 101 and Ksh.  500 down from Ksh.  11 and sending between Ksh.  1501 and Ksh.  2500 will cost Ksh.  22 down from Ksh.  41.

The company says this is in consideration of the expiry of the period for zero rated MPESA transactions and ongoing COVID-19 and economic circumstances.

Here are the new charges that will be effective from January 1st 2021 and will remain permanent.

MIN MAX TRANSFER TO MPESA USERS, POCHI LA BIASARA AND BUSINESS TILL TO CUSTOMER TRANSFER TO OTHER REGISTERED MOBILE MONEY USERS TRANSFER TO UNREGISTERED USERS WIHTDRAW FROM MPESA AGENT
1 49 Free Free N/A N/A
50 100 Free Free N/A 10
101 500 6 6 45 27
501 1000 12 12 49 28
1,001 1,500 22 22 59 28
1,501 2,500 32 32 74 28
2,501 3,500 51 51 112 50
3,501 5,000 55 55 135 67
5,001 7,500 75 75 166 84
7,501 10,000 87 87 205 112
10,001 15,000 97 97 265 162
15,001 20,000 102 102 288 180
20,001 35,000 105 105 309 191
35.001 50,000 105 105 N/A 270
50,001 150,000 105 105 N/A 300

 

Just like it was mentioned below on the CBK directive, all transactions of KES 100 and below will remain free. Customers will be charged Ksh.10 however to withdraw Ksh. 100.

Safaricom says that all MPESA customers will continue to enjoy free transactions between MPESA and bank accounts. They have also maintained the KES 300,000 limit to transact in a day and the KES 300,000 you can hold in your MPESA account that was brought forth this year as part of the COVID-19 related measures.

The new reduced tariffs will also apply to transactions for micro-businesses under their new Pochi La Biashara service, and for Lipa Na MPESA businesses using the Transacting till to make payments. NEXT

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