In the wake of the COVID-19 pandemic, Safaricom announced that they were waving M-Pesa transaction fees such that, transactions below Ksh1000 were free across the country.
All this was to encourage a cashless mode of payment as a measure to ground the spread of the virus.
The Telecommunications company released a press statement in December of 2020 stating that they were going to adjust charges of their mobile money services effective from the 1st Jan 2021.
Safaricom’s Chief executive, Peter Ndegwa, announced that the decision was made following the termination of the free transaction rates during the pandemic. M-Pesa tariffs have reduced by 45% after an agreement between the network company and the Central bank of Kenya.
However, the operator still maintains its “M-Pesa Kadogo” tariff charges. All transactions below ksh100 are free.
This table below illustrates the amount of money and charges M-Pesa users are allowed to transact from the 1st of January 2021.
These changes are also applicable to ATM transactions among other transactions such as sending money to other networks and unregistered users.
Sending Money to Unregistered Users
Unregistered M-Pesa users can also receive and withdraw money as usual.
Safaricom will send a text message on their phone with a 4 digit code that the receiver should use to access their money.
The 4 digit code is a one-time voucher they can use to withdraw the money. Charges for such a transaction are however expensive as compared to the sum that applies to registered users.
M-Pesa ATM withdrawals are available in most banks around the country.
Select the withdrawal option and your Safaricom line will receive a digital code that expires in a short period. This code will help you access your cash.
While withdrawing at an M-PESA agent, you’ll be charged as follows;
It is important to note that, M-Pesa registrations and all deposits are free of charge. Safaricom also allows users to buy airtime for themselves and other numbers free of charge.
These changes also apply to micro-businesses transactions (lipa na Mpesa and their new service Pochi la Biashara) effective from January 1st,2021.
Registering for a new M-Pesa account requires new users to provide an original Identification Card at any agent outlet as the process only takes a few minutes.