CBK eyeing cut in what you pay to transfer cash

A client using mobile phone to make a transaction. The Central Bank of Kenya says it will examine and give guidance on a single integrated platform for such transactions.

Photo credit: File | Nation Media Group

Mobile money and bank transaction fees are set for a shake-up with Central Bank of Kenya (CBK) planning to roll out a new system allowing customers to send money across any telco or bank cheaply.

The financial sector regulator yesterday said it would examine and give guidance on a single integrated platform for such transactions.

“The emergence of a fully integrated ecosystem that is seamlessly interoperable is critical. A strong foundation has already been laid with the rollout of P2P (person-to-person) interoperability in 2018 and the industry engagement that culminated [in] the proposal for a single integrated solution with multiple functionalities (national switch),” CBK said in its newly launched National Payment Strategy 2022-2025.  

“The overall objective is to ensure that customers can move money across any mobile money provider or banking institution, promptly and at a reduced cost than is currently the case” it added.

CBK said it is also set to upgrade its cheque clearance and electronic funds transfer system to cut costs by eliminating manual intervention by bank agents and allowing for seamless connection with other certified digital payments such as mobile money.

It said it will introduce a straight-through-processing (STP) — an automated system — in the cheque clearing system to expedite clearing.

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