Kenya Plans Cut In Mobile Money Fees To Drive Digital Finance

The Central Bank of Kenya (CBK) has unveiled a bold plan to slash mobile money transaction fees by 57 percent, cutting the average cost from $0.18 (KES 23) to $0.07 (KES 10) by 2028.

The move, outlined in the draft Kenya National Financial Inclusion Strategy (NFIS) 2025–2028, aims to make digital finance cheaper and more accessible for all Kenyans.

CBK proposes peer-to-peer fee caps to lower costs, citing high charges as a major obstacle to adoption. Although 83 percent of adults already have a financial account, millions still rely on cash, especially in rural areas where transaction costs can reach 6.9 percent of the transfer value.

Technology is central to the plan. The draft calls for a national Fast Payment System to enable instant, 24/7 transfers across banks, mobile wallets, and microfinance institutions. CBK also wants open API standards to spur innovation, guidance on using AI and blockchain, and integration of Kenya’s digital ID with financial accounts to reduce fraud and simplify onboarding.

The strategy rests on six pillars: expanding access through more agents and wider mobile coverage; enhancing usage and affordability through lower fees and interoperability; strengthening consumer protection and financial literacy; driving innovation and cybersecurity; promoting rural finance with tailored credit and insurance; and improving access for women, youth, persons with disabilities, MSMEs, the informal sector, and displaced persons. CBK projects these measures will lift formal financial inclusion to over 90 percent of adults by 2028.

The recommendations could reshape Kenya’s lucrative mobile-money market. Safaricom’s M-Pesa controls 91 percent of the market and earned about $1.24 billion (KES 161.1 billion) in 2025, making transaction fees a key profit engine. A regulatory cap would pressure Safaricom’s margins and push it toward new growth areas such as lending, savings, and merchant services.

Competitors stand to benefit. Airtel Money, growing at around 9 percent, and smaller fintech players could gain ground as lower fees and new interoperability standards reduce Safaricom’s long-held pricing advantage.

If adopted, the CBK’s strategy signals a future where sending money in Kenya is instantaneous, affordable, and open to all, reinforcing the country’s reputation as Africa’s fintech pioneer.