CBK increases daily mobile money transaction limits to Ksh.250K, wallet size to Ksh.500K
The Central Bank of Kenya (CBK) has approved
the increase of limits of mobile money transactions and the size of the mobile
money wallet for relevant Payment Service Providers (PSPs).
CBK,
in a statement released on Friday, revealed the new changes saying they would
serve to increase the convenience of mobile money services to individuals and
institutions, as well as support the government in its plan to digitize
payments.
The
new changes, which take effect from Friday next week, will see the daily
transaction limit increased from Ksh.150,000 to a maximum of Ksh.250,000, and
the size of the mobile money wallet raised from Ksh.300,000 to Ksh.500,000.
“PSPs that offer mobile money wallets
increased the daily mobile money transaction limit from Ksh.150,000 to a maximum
of Ksh.250,000 and the size of the mobile money wallet from Ksh.300,000 to a
maximum of Ksh.500,000,” read a section of the statement.
“The increase in the amount transacted
through mobile money, and a higher mobile money wallet, will further deepen
financial inclusion and facilitate businesses that have been constrained by the
size of the mobile money wallet. The new measures are also expected to support
efforts by the Government to digitize payments for services offered to
Kenyans.”
CBK
noted that the limit will affect all transactions including those between PSPs,
banks and other institutions that partner with mobile money providers, adding
that the respective current tariff for transactions of up to Ksh.150,000 would
also be applied for transactions of up to Ksh.250,000.
Following
the new directive, PSPs have been urged to implement appropriate measures to
curb instances of money laundering, financing of terrorism and fraud.
The Central Bank defended the move citing a
substantial growth of businesses and mobile money transactions between 2020 and
2022 when PSPs made similar changes.
It
said that since the decision to increase mobile money transactions from
Ksh.70,000 to Ksh.150,000, and the daily limit for transactions and wallet size
from Ksh.150,000 to Ksh.300,000 in 2020, PSPs recorded a significant increase
in the volume and value of mobile money transactions.
The
number of new active customers, and services that facilitate payments to
businesses such as pay bills and till numbers also shot up.
“CBK data
from the period March 2020 to June 2023 indicates the number of pay bills and
till numbers have increased by 43% and 267% respectively; Volume and value of
pay bill payments have increased by 301% and 352 %, respectively and Volume and
value of till number payments have increased by 433%and 166%, respectively,” noted
the statement.
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