The Central Bank of Kenya (CBK) plans to slash the cost of sending money via M-Pesa and Airtel Money, arguing that high fees are choking innovation and limiting the next phase of financial inclusion in one of the world’s most advanced mobile money markets.
The regulator plans to cap P2P transfer charges as part of its 2025–2028 National Financial Inclusion Strategy, which targets reducing the average transaction cost from KES 23 ($0.18) in 2024 to KES 10 ($0.078) by 2028.
CBK says cutting fees will bring millions of low-income users into the digital economy and spur uptake of new services beyond basic money transfers.
“Recent data shows signs of plateauing growth in mobile money access and usage,” the CBK said. “Most users still rely primarily on basic services like person-person transfers, with limited uptake of advanced offerings such as digital credit, insurance, or savings.”
The slowdown comes despite Kenya’s mobile money system handling record volumes. In 2024, mobile money 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 money in 2024, underscoring its economic centrality.
But the CBK has warned that adoption has begun to level off. Mobile money use has risen from 27% of adults in 2007 to 82.3% in 2024.
CBK officials believe growth in new users is now harder to achieve because of the high fees.
“This is attributed to issues such as limited interoperability, high transaction costs, low financial literacy, and product designs that do not reflect the realities of the underserved groups,” CBK said.
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Safaricom currently charges between KES 7 ($0.054) and KES 108 ($0.84) for transfers, depending on the amount. Airtel Money offers free transfers within its network but charges KES 6 ($0.047) to KES 105 ($0.82) for inter-network transactions.
CBK argues that it is unsustainable if mobile money is to remain a tool of financial inclusion. The regulator says that pricing structures must be “proportional to low-value and other ‘public good’ related payments,” striking a balance between operators’ commercial targets and the goal of financial access.
Mobile money has become a significant revenue earner for Kenyan telcos as SMS and voice earnings decline. In 2024, M-PESA reported KES 161.1 billion ($1.2 billion) in revenues, about 44% of the company’s service earnings.
The outcome of CBK’s push will hinge on political will. Parliament, which must legislate the proposals, must decide whether to side with consumers or telcos who risk diminished returns.
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