The Central Bank of Kenya (CBK) plans to significantly reduce mobile money transaction fees, aiming to reignite financial inclusion and broaden participation in the digital economy. This initiative is detailed in the draft National Financial Inclusion Strategy 2025 – 2028, which seeks to address the stagnation in new mobile money users despite rising transaction volumes.

• The goal is to lower the average transaction fee from KSh 23 in 2024 to KSh 10 by 2028.
• The initiative will be guided by a 14-member National Financial Inclusion Council, chaired by the Treasury’s principal secretary.
• The CBK has invited public comments on the draft strategy, with the deadline for submission on Thursday 9th October.

The Central Bank of Kenya (CBK) has proposed a significant reduction in mobile money transaction fees, targeting a 130% cut by 2028, which would lower charges from Sh23 to Sh10 per transaction.

• The regulator aims to combat stagnation in mobile money usage and encourage more advanced services beyond basic transfers.
• This move, requiring parliamentary approval, could provide substantial relief to households and small businesses.
• However, it may reduce revenue for telcos like Safaricom, whose M-Pesa service generated Sh161.1 billion in revenue in the year ending March 2025.