Kenya Plans 57% Cut in Mobile Money Transaction Fees

Strategy Targets Rural Access and Transaction Costs

The draft Kenya National Financial Inclusion Strategy 2025-2028 identifies high transaction charges as a major adoption barrier, particularly in rural areas, where costs can reach 6.9% of transfer values. CBK proposes peer-to-peer fee caps to lower expenses, despite 83 percent of adults already holding financial accounts. The central bank plans a national Fast Payment System enabling instant 24/7 transfers across banks, mobile wallets, and microfinance institutions.

The strategy incorporates open API standards to encourage innovation, guidance on AI and blockchain implementation. CBK projects these measures will increase formal financial inclusion to over 90% of adults by 2028 through six pillars covering access expansion, usage enhancement, consumer protection, innovation promotion, rural finance support. They will also provide improved services for women, youth, persons with disabilities, and MSMEs.

M-Pesa Dominance Faces Regulatory Pressure

Safaricom’s M-Pesa controls 91% of Kenya’s mobile money market and generated approximately $1.24 billion in 2025, with transaction fees representing a key revenue source. Regulatory fee caps would pressure Safaricom’s profit margins, potentially forcing diversification into lending, savings, and merchant services. Airtel Money and smaller fintech competitors could benefit from reduced pricing advantages currently held by the market leader.

The proposed regulations signal Kenya’s commitment to affordable, accessible digital finance infrastructure, reinforcing its position as Africa’s fintech leader. Implementation would create instant, low-cost money transfers available to all Kenyans through enhanced interoperability and standardized payment systems.