- CBK increases Mobile Money Transanctions and Wallets Limits to Support Digitization of Payments;
The Central Bank of Kenya (CBK) announces increase in the limits for mobile money transactions and the size of the mobile money wallet. The new transaction limits and wallet size will support customers, businesses and institutions including Government agencies to make and receive digital payments in larger amounts, thereby increasing the convenience of mobile money services in Kenya.
Since 2020,CBK in consultation with Payment Service Providers (PSPs) and other financial institutions implemented a range of measures to facilitate mobile money transactions to support citizens and businesses during the pandemic period.These measures were gradually withdrawn between 2020 and 2022.
Over this period, to date, there has been a significant increase in the volume and value of mobile money transactions, number of new active customers, and services that facilitate payments to businesses such as pay bill and till numbers. CBK data from the period March 2020 to June 2023 indicates:
• Number of pay bills and till numbers have increased by 43 percent and 267 percent respectively;
• Volume and value of pay bill payments have increased by 301 percent and 352 percent, respectively;
• Volume and value of till number payments have increase by 433 percent and 166 percent, respectively.
This growth is driven in part by the initial increase in the limit for mobile money transactions from Ksh. 70,000 to Ksh. 150,000, increase in the daily limit for transactionsand wallet size from Ksh.150,000 to Ksh. 300,000.The performance demonstrates that CBK measures were necessary, timely and effective.
To build on these gains, CBK received and assessed applications from relevant Payment Service Providers (PSPs) to increase the daily mobile money wallet size from Ksh. 300,000 to Ksh.500,000, and the transaction limit from Ksh. 150,000 to Ksh. 250,000.Following internal review, CBK approved the new limits.The new measures will be implemented as follows:
(1)PSPs that offer mobile money wallets increased the daily mobile money transaction limit from Ksh. 150,000 to a maximum of Ksh. 250,000 and the size of the mobile money wallet from Ksh. 300,000 to maximum of Ksh. 500,000.These increases took effect from August 15, 2023.
(2) The new transaction limit will apply for all transactions that make use of mobile money rails and infrastructure, including transactions between PSPs, banks and other institutions that partner with mobile money providers.
(3) The respective current tariff for transactions of up to Ksh.150,000 will apply for transactions of up to Ksh. 250,000. This includes, but not limited to, transactions between mobile money providers, other PSPs, banks, and other institutions that partner with mobile money providers.
(4) PSPs to implement enhanced and appropriate risk mitigation measures to identify, mitigate and report risks such as: money laundering, financing of terrorism and proliferation finance;fraud including the risk of digital or online scams; operational risks;cybersecurity; including speedy resolution of customer complaints.
The increase in the amount transacted through mobile money, and a higher mobile money wallet, will further deepen financial inclusion and facilitate businesses that have been constrained by the size of the mobile money wallet.The new measures are also expected to support efforts by the Government to digitize payments for services offered to Kenyans.
CBK will closely monitor the implementation of the approved measures, to take appropriate action where necessary and assess impact on the wider financial ecosystem.