The Central Bank of Kenya (CBK) has declared war on the high cost of sending money, unveiling a radical plan to slash mobile money transaction fees by more than half over the next three years. In a move that could fundamentally reshape the balance of power between Kenyan consumers and the telco giants, the regulator is targeting a drop in the average transfer cost from KES 23 (approx. $0.18) to just KES 10 (approx. $0.07).

This directive is the centerpiece of the newly released Kenya National Financial Inclusion Strategy 2025–2028. For the CBK, the logic is simple but urgent: while Kenya is a global pioneer in mobile money, the revolution is running out of steam. High fees are no longer just an annoyance—they are a barrier keeping millions of Kenyans from using digital platforms for anything more than basic survival.

The Stagnation Trap

For over a decade, the narrative of Kenyan fintech has been one of explosive growth. But the data tells a cooling story. While over 82% of Kenyan adults now have access to a formal financial account, the depth of that usage is shallow. Most users treat M-Pesa and Airtel Money as digital pipes for moving cash, rather than tools for savings, insurance, or credit.

CBK Governor Kamau Thugge has been blunt: the growth engine is stalling. "Recent data shows signs of plateauing growth in mobile money access and usage," the regulator noted in its strategy document. The culprit? Prohibitive costs that punish the smallest transactions.

• Current Reality: Transaction fees can eat up to 6.9% of the value of small transfers, disproportionately hurting low-income earners.
• The Target: A mandated reduction of 57% in average fees by 2028.
• The Goal: Push formal financial inclusion to over 90%, bringing the unbanked into the digital fold.

Safaricom in the Crosshairs

The elephant in the room is Safaricom. With its M-Pesa platform controlling over 91% of the market, any regulatory squeeze on fees is a direct hit to the telco’s bottom line. In 2025 alone, M-Pesa generated a staggering KES 161.1 billion (approx. $1.24 billion) in revenue, cementing its status as the company's profit engine.

Analysts warn that a forced fee reduction will trigger a fierce boardroom battle. While Airtel Money has already waived many on-net fees to gain ground, Safaricom relies heavily on transaction charges. The CBK's move forces the market leader to pivot—likely pushing them to innovate in lending and merchant services rather than relying on rent-seeking from simple transfers.

Beyond the Fees: The Fast Payment System

Lowering prices is only half the battle. The CBK is also laying the groundwork for a national Fast Payment System (FPS). This infrastructure aims to make transfers between banks, mobile wallets, and microfinance institutions instant and 24/7, effectively tearing down the walls that currently make cross-network transfers expensive and clunky.

For the average Kenyan—the mama mboga in Gikomba or the boda boda rider in Kisumu—this isn't just high-level policy. It means keeping more of their hard-earned shillings. If the CBK holds its nerve, the era of paying a premium to access one's own money may finally be coming to an end.

"Pricing policies must strike a balance between commercial targets and the public good," the CBK strategy concludes. The message to the telcos is clear: the party is over, and the bill for financial inclusion is due.