BusinessCrime WatchHomeMain StoryNational NewsNewsPoliticsSoul FoodTech

Safaricom increases M-Pesa withdrawal costs in new charges for 2025

For instance, withdrawing Ksh1,000 costs Ksh29 while sending Ksh1,000 costs Ksh13

Telecommunication giant Safaricom PLC has hiked M-Pesa withdrawal charges in the newly announced M-Pesa transaction charges for the year 2025.

For instance, withdrawing Ksh1,000 costs Ksh29 while sending Ksh1,000 costs Ksh13.

However, in the new tariff, the cost of sending money via M-Pesa has been harmonized across other networks such as T-Kash or Airtel Money.

A statement released by Safaricom PLC, reveals that the transfers to Airtel Money and Telkom’s T-Kash now match the rates for Safaricom-to-Safaricom transactions.

However, the transfers to unregistered users have been discontinued due to fraud and money laundering concerns. These are charges that customers incur depending on the amount and type of the transaction taken.

In the charges, sending Ksh1,000 will cost Ksh13 to transfer to Safaricom, Airtel Money, or T-Kash. The maximum amount that one can send in one transaction is Ksh250,000, with the maximum daily transaction and balance limit capped at Ksh500,000.

According to Safaricom, one cannot withdraw less than Ksh50 at an M-Pesa agent outlet. Additionally, to initiate an M-Pesa self-reversal, you need to send the transaction confirmation to 456.

Meanwhile, the High Court on Friday, January 24, 2025 dismissed a case challenging the legality of transaction charges imposed on users of Safaricom’s Lipa na M-Pesa platform.

Justice Lawrence Mugambi dismissed the case by Moses Wafula saying he should have first discussed the matters with the Communications Authority of Kenya (CA) and if not satisfied, move to the Communications and Media Appeals Tribunal.

Wafula had sued Safaricom PLC saying that the charges imposed on pay bill service and used by the government, state corporations, and other private organisations in the payment of the services, were unconstitutional.

See also  Kihara, Haji officially take over as AG and DPP

“In my view, the nature and scope of the dispute perfectly falls within the competence of the Communications Authority of Kenya. There is an appellate machinery whereby if dissatisfied, the petitioner can lodge an appeal to the Appeals Tribunal established under the Kenya Information and Communications Act (KICA),” Justice Mugambi said.

The judge added that although Wafula had argued that the mechanisms provided by KICA were inadequate, he was not persuaded that it is not beyond the reach of the CA to adequately determine and provide sufficient remedies, if need be.

Wafula argued that Safaricom had not indicated whether transaction costs were arrived at after consultation with affected parties and that the public was never afforded an opportunity to choose an applicable tariff.

Safaricom had opposed the case saying the Lipa na M-Pesa terms and conditions were approved by the CA for the various products and services it provides to its customers based on the Standard Subscriber Service Agreements under the Kenya Information and Communications (Consumer Protection) Regulations.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
error: Content is protected !!