In a significant move set to transform the landscape of mobile financial services, the Central Bank of Kenya has granted Safaricom’s request to elevate the M-PESA account limit to KSh. 500,000. This transformative adjustment is poised to take effect on August 15, 2023, and will be applicable to all M-PESA customers across Kenya.
Alongside the expanded account limit, an equally noteworthy alteration comes to the forefront: the elevation of the daily transaction ceiling for M-PESA transactions, now ascending to KSh. 500,000. It’s noteworthy that while the per-transaction limit of KSh. 150,000 remains unchanged, this regulatory development now allows customers to perform multiple transactions within the amplified daily threshold. This strategic shift is anticipated to wield a particularly positive impact on small and medium-sized enterprises (SMEs) in Kenya, affording them greater latitude in facilitating cashless payments.
Evidencing the profound influence of M-PESA in the Kenyan financial landscape, the Lipa Na M-PESA service charted a remarkable journey in the previous financial year. Enabling seamless transactions for over 606,000 businesses, this dynamic service contributed to a staggering total transaction volume of KSh. 1.625 trillion. This vividly illustrates that M-PESA has securely entrenched itself as a preferred and indispensable payment mechanism for businesses across the country.
This strategic development bestows customers with heightened flexibility and enhanced convenience when harnessing the power of M-PESA for their financial transactions. Furthermore, the ripple effects of this transformation extend to the core of the Kenyan business ecosystem. SMEs, the heartbeat of the nation’s economy, stand poised to reap the rewards of this decision, with newfound maneuverability in navigating the cashless payment landscape.
Jacob Hodge