Safaricom, a prominent telecommunications company, has revealed its intention to increase both M-PESA account and daily transaction limits, subsequent to obtaining the green light from the Central Bank of Kenya (CBK). This strategic move is anticipated to stimulate business transactions across the nation, with a particular focus on Small and Medium-sized Enterprises (SMEs), as the prevalence of cashless transactions continues its ascent.
The preceding fiscal year, concluding in March 2023, witnessed a noteworthy influx of payments to over 606,000 businesses through Lipa Na M-PESA, tallying a substantial KSh. 1.625 trillion transacted over the span of twelve months.
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Endorsed by the CBK, Safaricom’s M-PESA account thresholds will rise to KES 500,000. These changes will come into effect on Tuesday, August 15, encompassing all M-PESA customers across the board.
Safaricom CEO, Peter Ndegwa. said the increased limits will accord customers, especially small businesses, increased convenience as the share of cashless transactions continues to rise.
“We appreciate the role that the Central Bank of Kenya has played by constantly providing guidance on innovations and protections that we have put in place to strengthen M-PESA’s adherence to KYC, anti-money laundering, and other financial regulations and safeguards,” he said.
Furthermore, M-PESA customers will enjoy the benefits of an increased daily transaction limit, amounting to KES 500,000 per day, up from the prior limit of KES 300,000. It is noteworthy to mention that the existing per-transaction limit of KES 150,000 remains unaffected. However, M-PESA customers can engage in multiple transactions up to the increased daily limit of KES 500,000.
Notably, Safaricom recently adjusted M-PESA transaction costs in response to the implementation of the Finance Act. Detailed updates regarding the modified MPESA transaction charges are now in effect.
