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CBK issues new directive on mobile money transactions

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The Central Bank of Kenya (CBK) announced the resumption of fees for transactions above 100 ksh for cooperative savings and credit societies (SACCOs) through a bank’s individual mobile money wallet on Thursday April 1 .

This payment method allows a bank to integrate its financial services with other financial institutions. Bank money portfolios are closely linked to the corporate credit industry.

This is a relief for SACCOs as they facilitate loans for short-term capital membership need and lack alternatives to connect to the mobile money ecosystem.

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This decision aims to encourage banks to offer support to SACCOs, as they constitute an important bridge to national and cross-border payment systems.

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Kenya Credit and Savings Cooperatives Union President George Magutu

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The fee recovery will provide space to increase connection options for SACCOs and will be reviewed.

“The recovery of charges will be subject to review by CBK against the pricing principles announced on December 17, 2020, customer-centric, transparency and disclosure, fairness and fairness, choice and competition, and accessibility,” reads the communicated.

The principles aim to support the development of an efficient, secure and stable payments and mobile money ecosystem where the interests of customers and the public are properly protected.

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Charges were dropped in 2020 to protect UKTN from the economic effects of the Covid-19 pandemic

Banks in Kenya are deploying two types of mobile banking wallets. In the first case, banks are partnering with payment service providers to use their mobile money wallets to provide a variety of transactions through customers’ bank accounts. In the second wallet, they invest directly in their own internal mobile banking wallets to facilitate mobile money and other wallet-based financial services.

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CBK will continue to monitor developments and support the growth of the payments ecosystem to ensure choice, competition and affordability.

The measures announced by CBK were due to expire on June 30, 2020, but were extended until December 31, 2020, following a review.

“Against the background and in accordance with Regulation 43 (2) of the National Payment System Regulation, 2014, CBK has determined that the wallet transaction limits announced on March 16, 2020 will remain in effect,” the regulator said.

Kenyan currency banknotes.

Kenyan currency banknotes.

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