Safaricom To Slash M-Pesa Transaction Rates Effective January 2021

Safaricom has announced new Mpesa tariff that will see a reduction in money transfer costs by up to 45 percent starting January 1, 2021.

The company’s Chief Executive Officer Peter Ndegwa says the new tariffs is in consideration of the expiry of the period for the zero-rated M-PESA transactions and the ongoing Covid-19 and economic circumstances.

We are reducing our M-PESA "Send Money" Rates by up to 45% for more than 90% of Customer Transactions, effective 1st January, 2021. #TwendeTukiuke Read more: https://t.co/60hIovMWQT pic.twitter.com/D220QPA1Rg

— Safaricom PLC (@SafaricomPLC) December 22, 2020

“These tariff reductions will affect more than 90 per cent of all customer transactions when sending money,” The Safaricom boss said

In the reviewed tariffs, it will now cost Sh6 to send between Sh101 and Sh500, down from Sh11. At the same time, Transactions of between Sh1,501 and Sh2,500 will cost Sh32 down from Sh41.

What’s more, Ndegwa noted that all transactions of Sh100 and below will remain free. The Safaricom CEO further disclosed that all Mpesa customers will continue to enjoy free transactions between Mpesa and bank accounts.

“The price cuts are permanent, effective from January 1, 2021 and will enable more than 26.8 million customers to continue enjoying lower costs whenever they send money.” Ndegwa noted

Ndegwa noted that the Central Bank of Kenya the Principles on the Pricing of Mobile Money Services was instrumental in the decision taken to reduce the M-PESA tariffs for lower value transaction bands.