M-Pesa Revenue Dip in Kenya Is Beyond Mobile Money Fee Waivers
Earlier this year in March, the Central Bank of Kenya (CBK) imposed a fee waiver on transfers for transactions of no more than KES 1 K (USD 9.15 at current rates).
This was part of efforts aimed at containing the spread of the virus as banknotes were identified as a risk factor for the contagion. The intention was that this action would trigger the increased use of mobile money services and limit cash-handling.
While it’s logically a good move putting the health and the wellbeing of people first, this single directive is found to have also caused a significant dip in revenue for Kenya’s dominant mobile money service, M-Pesa, and by extension, the country’s leading telco, Safaricom, took a hit.
Photo courtesy of Simon Berry.