Kenya Moves to Slash M-PESA and Airtel Money Fees to Boost Financial Inclusion
Kenya’s Central Bank (CBK) is moving to cut the cost of sending money through popular mobile money platforms M-PESA and Airtel Money, saying high transaction fees are choking innovation and slowing down the country’s once-stellar financial inclusion drive. Regulators believe cheaper transfers will open up the digital economy to millions of low-income users who still struggle to afford basic services.
As part of its 2025–2028 National Financial Inclusion Strategy, CBK plans to cap person-to-person (P2P) transfer charges, reducing the average fee from KES 23 ($0.18) in 2024 to KES 10 ($0.078) by 2028. The bank says this will make mobile money more affordable, increase uptake of products like digital credit and insurance, and help the sector move beyond basic cash transfers.
Mobile money remains central to Kenya’s economy, handling record volumes even as growth slows. In 2024, providers processed an estimated KES 8.7 trillion ($67.3 billion), up from KES 7.9 trillion ($61.1 billion) the previous year. On average, Kenyans moved KES 21 billion ($162.5 million) daily via mobile wallets. Yet, despite 82.3% of adults using mobile money compared to just 27% in 2007, CBK data shows signs of plateauing adoption.
High charges remain a sticking point. Safaricom’s M-PESA currently charges between KES 7 ($0.054) and KES 108 ($0.84) depending on the amount, while Airtel Money offers free transfers within its own network but charges KES 6 ($0.047) to KES 105 ($0.82) for inter-network transactions. CBK argues that these costs are “unsustainable” for the poor and hinder Kenya’s ability to leverage mobile money as a true public good.
The outcome of the regulator’s plan will hinge on Parliament’s political will. Lawmakers must decide whether to prioritise consumer welfare or telcos’ commercial returns. Mobile money is already a key revenue stream as SMS and voice revenues decline; M-PESA earned KES 161.1 billion ($1.2 billion) in 2024, about 44% of Safaricom’s service revenue. If passed, the CBK’s reforms could reshape one of the world’s most advanced mobile money markets.
source: techcabal