SACCO customers will now bear the charges of transferring money from their accounts to mobile money platforms operated by banks. This is after the Central Bank of Kenya announced resumption of the charges for transactions above Ksh.100.
CBK did not allow banks to resume charges on mobile money transfers in December when lifting the emergency moratorium on transaction fees. The moratorium on transaction fees was meant to cushion customers during the tough economic times caused by Covid-19.
Saccos were allowed to make charges and mostrelied on third party providers such as banks because they don’t have their own platforms. These third party providers however demanded user fees from the Saccos.
However, CBK has allowed third party providers to charge fees to each transaction linked to Saccos.
“CBK announces the resumption of charges for transactions above Sh100 effected through bank specific (in-house) mobile money wallets that are closely linked to the savings and credit societies sector,” CBK said in a statement.
The Co-op Bank for example, launched MCo-op Cash in partnership with Ecclectis in 2014 a mobile platform for Saccos. MCo-op Cash allows Sacco members to access banking services, make payments, transfer money, inquire balance and move money to Airtel Money and M-Pesa.
MCo-op Cash has issued new tariffs and customers will now be charged Ksh20 to Ksh50 for moving money to their mobile money wallets. Inter accounts and Sacco charges on the other hand will cost Ksh20.
“The bank has received regulatory approval from the Central Bank of Kenya on new subsidised charges relating to MCo-ioCash wallet transfers to other wallets with full consideration on the needed relief to customers under Covid-19,” it said.
The Central Bank additionally imposed a waiver on mobile transaction fees to reduce cash payments. The new measure will run until the end of January. This is as a way to help curb the spread of the Covid-19 Pandemic.