The Central Bank of Kenya (CBK) has unveiled bold plans to slash mobile money transaction fees in a bid to reignite financial inclusion and unlock broader participation in the digital economy. Through the draft National Financial Inclusion Strategy 2025 – 2028, CBK aims to reduce average transaction costs from KSh 23 in 2024 to just KSh 10 by 2028. This move comes as high costs continue to lock out lower-income households from fully embracing mobile money platforms such as M-PESA and Airtel Money, despite Kenya’s reputation as a global leader in digital payments.
While mobile money transactions hit an estimated KSh 8.7 trillion in 2024, the growth in new users has stagnated, with penetration plateauing at 82.3% of adults. The majority of users continue to rely on basic peer-to-peer transfers rather than leveraging savings, insurance, or investment opportunities. CBK’s intervention is designed to revitalize this sector, ensuring digital payments can once again become a driver of economic empowerment, particularly for marginalized communities.
The financial inclusion strategy also sets out broader goals beyond transaction costs. By 2028, CBK targets to increase active bank account usage from 45.6% to 60%, boost formal savings adoption from 68% to 75%, and raise investment uptake from a modest 4% to 15%. These ambitious targets underscore the regulator’s commitment to ensuring financial services go beyond transactions, enabling households and businesses to build resilience, accumulate wealth, and participate more fully in the economy.
In addition to fee reductions, CBK plans to foster interoperability and innovation. The rollout of a fast payment system, the development of open API standards for financial institutions, and the digitization of savings tools will make financial services more seamless and accessible. Financial literacy initiatives are also central to the plan, equipping citizens with the knowledge and confidence to utilize long-term products such as pensions, insurance, and capital markets instruments.
The strategy acknowledges the delicate balance between commercial imperatives and public interest. Mobile money has become a significant revenue stream for telcos, with M-PESA contributing nearly half of Safaricom’s service earnings in 2024. However, CBK emphasizes that pricing structures must reflect the essential role of digital payments as both a profit center and a public utility, serving the needs of citizens across the socioeconomic spectrum.
To drive these reforms, a 14-member National Financial Inclusion Council will oversee the rollout. Chaired by the Treasury’s principal secretary and with CBK serving as its secretariat, the council brings together key regulators including the CMA, IRA, and SASRA. Meeting twice a year, the council will review progress, mobilize resources, and ensure industry alignment with the overarching goal of deepening financial inclusion. Public input is also encouraged, with CBK inviting comments on the draft strategy ahead of the October 9th deadline.
