High Court Halts Bank, Mpesa Transaction Charges

Judge Mugure Thande at Milimani Law Court has halted Bank to Mpesa transaction charges following Moses Wafula’s file application.

The charges which were to take effect in January, 2023, were waived March, 2020 to ease the high cost of living brought about by Covid-19 pandemic.

On December, 2022, Central Bank Of Kenya (CBK) issued a press release informing netizens to get prepared on the rebirth of transaction charges at the start of January, 2023 at a lower percentage than before Covid- 19.

” The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent and mobile money wallet to bank account by on average up to 47 per cent,” said CBK.

Feeling the pain of a commoner, Mr Wafula argues that commoners are not entitled to bank – Mpesa transaction charges but in case, should be entitled to Safaricom’s clients such as KPLC and Banks themselves.

Furthermore, he opines that if by the case commoners pay for the charges and come out to be illegal, more money will have been lost and it will be difficult for people to get refunded.

“If the Banks continue riding on this M-Pesa pay bill infrastructure and the courts ultimately find the M-Pesa pay bill platform to be in contravention of the constitution, the impact will be higher; more funds from the public would have been lost and it may be a lot more difficult to task the banks to refund such funds collected from the public,” reads Wafula’s petition.

The order by Justice Thande will be in force until January 23 when the matter will be mentioned for further directions as responses to the filed application by Wafula, to be done by January 20.