Safaricom has introduced adjustments to M-PESA withdrawal charges as part of its ongoing effort to align its services with the changing dynamics of the mobile money landscape. The revisions include increases in withdrawal fees for specific transaction bands.
The adjustments are expected to impact millions of M-PESA users across Kenya. The move comes as M-PESA continues to dominate the mobile money space, handling billions in transactions monthly and playing a crucial role in financial inclusion.
The new tariff structure introduces incremental increases in withdrawal fees for various transaction amounts. For instance:
Withdrawals of KSh 50-100 now cost KSh 11, up from KSh 10.
Transactions between KSh 101-500 will incur a fee of KSh 29, an increase of KSh 2.
For higher withdrawal amounts, such as KSh 7,501-10,000, the fee has risen by KSh 3 to KSh 115.
Withdrawals in the KSh 10,001-15,000 range now cost KSh 167, up by KSh 5.
Fees for withdrawals between KSh 35,001-50,000 have increased by KSh 8 to KSh 278.
For the largest withdrawals, ranging from KSh 50,001 to KSh 150,000, the charge has risen by KSh 9 to KSh 309.
M-PESA has cemented its position as a critical enabler of financial transactions in Kenya, with millions of users relying on the platform for daily activities such as sending money, paying bills, and accessing loans. The platform’s ability to cater to both low-income earners and high-value transactions has been instrumental in driving its widespread adoption.
To support the increasing demand, Safaricom revised M-PESA transaction limits in September 2023. Customers can now transact up to KSh 250,000 per transaction. This includes Send Money: KSh 108 per transaction Lipa Na M-PESA BuyGoods: KSh 151,000 to KSh 250,000 PayBill: KSh 151,000 to KSh 250,000 and hold up to KSh 500,000 in their M-PESA accounts.
These changes aim to accommodate high-value transactions for personal and business use. The Central Bank of Kenya (CBK) approved the increase to the transaction limits. The new limits are intended to: Boost business transactions, provide customers with more convenience, and Strengthen M-PESA’s adherence to financial regulations.
M-PESA has maintained its unrivaled dominance in Kenya’s mobile money market for years. Despite efforts by competitors like Airtel Money and T-Kash to challenge its position, none have succeeded in claiming the top spot.
Airtel currently holds a 3.4% share of Kenya’s mobile money market, placing it second behind Safaricom’s M-PESA, which dominates with a 96.5% market share. Telkom Kenya’s T-Kash trails in third with a modest 0.1%.
Safaricom has over 167,000 M-PESA agents in Kenya. To become an authorized M-PESA agent, a company must be registered as a limited company, have at least three outlets, and have been trading for at least six months
The announcement has elicited mixed reactions from M-PESA users. While some customers understand the need for the changes, others have expressed concerns about the impact of higher fees on low-income users. Many have taken to social media to share their views, with some urging Safaricom to consider additional measures to cushion vulnerable customers.
Safaricom is keen to maintain transparency in its pricing. The company introduced real-time price checks on its M-PESA app, allowing users to view transaction costs before completing any action on the platform. This feature aims to enhance customer trust and ensure clarity in service charges.
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