Safaricom, a prominent telecommunications company in Kenya, has gained the Central Bank of Kenya’s (CBK) endorsement to significantly raise the daily transaction limits on its mobile money platform, M-Pesa. The new limit, which stands at Ksh500,000, is more than triple the previous cap. This strategic maneuver is aimed at fortifying Safaricom’s position against commercial banks in the flourishing digital payments sector. M-Pesa, traditionally a peer-to-peer payments tool, is now being repositioned as a versatile e-commerce platform, facilitating both individual and business transactions.
This development is not only about increasing transaction limits; it reflects Kenya’s broader push towards embracing a cashless economy, a trajectory accelerated during the COVID-19 pandemic. By boosting the daily transaction ceiling, Safaricom hopes to cater to a more diverse range of financial activities, while the increased limits also mark a maturing trust in the stability and security of the mobile money ecosystem.
Safaricom’s expansion of the M-Pesa daily transaction limits also underscores a significant shift in consumer behavior. The familiarity and convenience of mobile money have led to its integral role in the country’s economic activities. However, this expansion comes with an added responsibility for regulators to ensure stringent anti-money laundering and Know Your Customer regulations are in place to thwart potential misuse and fraud.
As Safaricom seeks to maintain its competitive edge against the rising tide of digital banking solutions, the move to elevate the M-Pesa transaction limits underscores its commitment to driving financial inclusion, innovation, and economic growth. While it empowers consumers and businesses, a well-orchestrated regulatory framework remains essential to safeguard against potential risks as digital financial services continue to reshape Kenya’s economic landscape.
BDA