Kenya: Banks, Mobile Money Agents Are Counting Losses
Source: Daily Nation
In response to the economic disruption from COVID-19 pandemic, the Central Bank of Kenya announced a set of directives on 16th March, 2020. These directives promote digital transactions to curb the spread of COVID-19. These directives have significantly impacted the banks and mobile money agencies as it has reduced the transaction income for these institutions.
The main services provided by mobile money and bank agents are cash-in (deposits) and cash-out (withdrawals) also referred to as CICO. One of the directives eliminates customer charges on transfer of funds from a bank account to a mobile wallet – effectively encouraging this as a deposit option as opposed to depositing cash at a physical agent location. Another of the directives makes it free to transfer funds under Sh1,000 ($10) between mobile wallets.