The Central Bank of Kenya (CBK) is pushing for aggressive price controls on person-to-person (P2P) mobile money transfers, a move set to squeeze profit margins at dominant players like Safaricom’s M-Pesa and Airtel Money. The regulator’s new policy proposal aims to nearly halve the average cost of a mobile money transaction to KES 10 by 2028, down sharply from the 2024 baseline of KES 23.
The policy is driven by a core mandate of deepening financial inclusion and ensuring the affordability of essential digital services.
- Financial inclusion plateau: Despite Kenya leading the world in digital finance—with the latest sector report showing mobile money penetration hitting a staggering 91% (47.7 million active subscriptions as of June 2025)—the CBK notes that usage growth has recently plateaued.
- High costs a barrier: The primary reason cited for this slowdown and the limited uptake of advanced services (like digital credit or savings) is high transaction fees. Current charges for P2P transfers can be as high as 6.9% of the amount moved, far surpassing typical bank retail fees.
- Encouraging deeper usage: The CBK aims to incentivize the use of mobile money for small-value and “public good” related payments, ultimately promoting a more robust and equitable digital economy.
- Dominance and competition: The move also targets Safaricom’s market power; M-Pesa accounts for over 90% of all mobile money transactions. Capping fees will introduce pricing parity, boosting competition and giving consumers more choice.
The price cap will directly impact telecoms operators’ revenue streams. Data reveals that a significant portion of M-Pesa’s revenue, 39.1% (KES 62.9 billion over 12 months to March 2025), is sourced from personal cash transfers. Capping these P2P rates is expected to dent overall mobile money revenue, forcing operators to find new growth areas beyond simple transfer fees, such as advanced financial products. The CBK’s goal is to compel a balance between short-term commercial targets and long-term sustainable, affordable growth.
