Safaricom cuts M-Pesa transaction costs by up to 45 per cent

Safaricom has reduced transaction cost between Sh101 and Sh500 to Sh6 from Sh11. Sending Sh1,501 to Sh2,500 will cost Sh32 down from Sh41 while transactions below Sh100 remain free. The new rates take effect from January 1, 2021.

As part of various measures to help the country better weather the Covid-19 Pandemic, the telco announced temporary zero-rating of M-Pesa transactions in March.

“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 M-Pesa tariffs by up to 45 per cent for lower value transaction bands. This is in consideration of the expiry of the period for the zero-rated M-Pesa transactions and the ongoing Covid-19 and economic circumstances,” said Safaricom CEO Peter Ndegwa.  

In addition, free transactions between M-Pesa and bank accounts will still be available for all customers.

The firm says that the tariff reductions will affect more than 90 per cent of all customer transactions when sending money.

New M-Pesa tariffs, effective January 1, 2021.

“The price cuts are permanent, effective January 1, 2021 and will enable our more than 26.8 million customers to continue enjoying lower costs whenever they send money,” said Safaricom CEO.

The new tariffs will also apply to transactions for micro-businesses under Safaricom’s new Pochi La Biashara service, and Lipa Na M-Pesa businesses using the Transacting Till to make payments.

The maximum amount a customer can transact daily or hold in their Mpesa account is Sh300,000.