Safaricom has announced lower paybill charges for money transactions between customers and businesses with effect from January 1, 2023.
Customers paying between Sh100 and Sh500 in paybill charges will now be charged Sh4, down from Sh23 in the new tariffs.
In a statement on Sunday, Safaricom said they have reduced the charges by 47 percent.
“We would like to notify our valued customers and partners on the reduction in charges by an average of 47 percent for M-PESA paybills and an average of 61 percent for Business to customer charges,” reads the notice.
Payments between Sh500 and Sh1,000 will cost Sh9, down from Sh23 while those between Sh50,000 and Sh150,000 will cost Sh105, down from Sh210.
Also, businesses sending money to customers will be charged Sh5 for payments between Sh100 and Sh1,500, compared to the current Sh15.27 while payments between Sh20,000 and Sh150,000 will now cost Sh12, down from Sh22.4.
The reduction of Paybill charges comes at a time many businesses have switched to using the platform after ditching the Lipa Na M-Pesa Buy-Goods payment option that eats into their incomes.
According to Safaricom, the new tariffs are also applicable to bank charges that were previously zero-rated.
Central Bank of Kenya (CBK) two weeks ago announced the reintroduction of charges for transactions between mobile money wallets and bank accounts after negotiation with lenders and mobile money payment firms.
The CBK waived the charges in March 2020 as part of measures that were put in place by the government to facilitate the use of mobile money to prevent the spread of Covid-19.