Days after the National Treasury announced the scrapping of the Covid-19 tax waivers, the Central Bank of Kenya (CBK) has also ended the free mobile money and bank transfers in what promises consumers a tough January.
CBK announced emergency measures on March 16, 2020 to facilitate increased use of mobile money transactions instead of cash, in the context of the coronavirus pandemic.
These measures ran until June 30, 2020 and were extended until December 31, 2020 after a review.
But the CBK said on Thursday that it has now allowed mobile companies to revert back to the pre-Covid rates, except for transactions below Sh100 following consultations with Payment Service Providers (PSPs).
THE STANDARD By
Fredrick Obura |
December 17th 2020 at 14:10:19 GMT +0300
Central Bank of Kenya Governor Patrick Njoroge at a past function (PHOTO: File)
NAIROBI, KENYA: Mobile money users will bid goodbye to the free transaction on Sh1000 introduced on the onset of Covid-19 pandemic.
The Central Bank of Kenya (CBK) on Thursday said it will allow the Payment Service Providers (PSPs) to introduce new charges on transactions above Sh100 by January 1, next year.
Mobile money customers will however not be charged for transferring less than Sh100 to any network and the wallet and transaction limits announced on March 16 will remain in force.
Sacco remittances halve to Sh900m
Monday December 14 2020
By LYNET IGADWAH
Summary
Delays in sacco remittances disrupts the financial base of the credit unions meaning that they may struggle to lend to members.
The amount of outstanding dues remitted to saccos halved to Sh900 million in the year to June compared to the similar period a year earlier, indicating the effect of liquidity challenges facing individuals and organisations in a tough economy.
Data from the National Treasury collated from the sector reports shows the amount has dropped from Sh1.8 billion the previous year.
Saccos usually rely on employer/institutions to directly make periodic deductions from members’ earnings and remit these directly to then.
THE STANDARD
HOME & AWAY
The country’s financial regulators led by the Central Bank of Kenya (CBK) have warned on the liquidity risks facing fund managers and pension schemes with an exposure to real estate.
This could lead to such investment managers being unable to pay matured returns or member benefits owing to a property slump in recent years now worsened by the Covid-19 pandemic.
“The pension schemes and fund managers who have invested in buildings and land face liquidity risks, occasioning delays in settling member benefits,” said the Financial Stability Report (FSR) 2020.
Produced annually, the FSR assesses the weakness and strength of Kenya’s financial system and reviews the period from January 2019 to June 2020.