THE Central Bank of Kenya (CBK) has warned Telecom operators in the country offering mobile money transfer services to cut down transaction charges or face consequences.
In a statement, the CBK wondered why operators had not reduced transaction costs despite the fact that the CKB allowed them (operators) to increase transfer limits.
The CBK last year increased the amount operators may transfer per transaction from $ 437.5 to $875.
The central bank governor, Njuguna Ndung’u, said operators must bring down charges and prominently display them for clients using these services.
“One of the pre-conditions for us to allow service providers to double the transfer limit was for them to bring down transaction costs and that has not been done,” said Ndung’u.
Operators currently offering money transfer services in Kenya include M-Pesa by Safaricom, Zap by Airtel Kenya, Yu Money by Yu and Orange Money by Telkom Orange.
Safaricom, with the highest number of customers with MPesa accounts, transacts about $ 25, 062,500 per month.
BRIAN ADERO in Nairobi, Kenya