Safaricom, has announced a significant increase in the daily limit for M-Pesa transactions. Historically, the service had capped daily transactions at KES 300,000, but following a recent approval from the Central Bank of Kenya, this figure is set to surge to KES 500,000.
Safaricom’s latest move, which will take effect from Tuesday 15th August 2023, is expected to benefit all M-PESA customers. The change aligns with the evolving financial landscape of the nation, especially in a time when the emphasis on cashless transactions is rapidly intensifying.
Peter Ndegwa, CEO of Safaricom, expressed gratitude to the Central Bank of Kenya for its ongoing support, particularly for its guidance concerning innovations and security measures aimed at fortifying M-PESA’s compliance with KYC, anti-money laundering, and various other financial safeguards. Ndegwa pointed out, “The increased account limits will provide customers and especially small businesses with increased convenience as the share of cashless transactions continues to rise.”
Moreover, while the daily transaction limit is set to be augmented, the individual transaction cap will remain at KES 150,000. This means users can undertake multiple transactions, ensuring they stay within the revised daily limit of KES 500,000.
This progressive step is anticipated to provide a substantial boost for Kenyan businesses, notably SMEs. The gradual shift towards cashless transactions has been evident, with the previous financial year recording impressive statistics. Data reveals that, up until March 2023, in excess of 606,000 businesses processed payments using the Lipa Na M-PESA service. This equated to a staggering total of KES 1.625 trillion transacted within the span of 12 months.
However, there remains some uncertainty regarding the applicability of this new limit. It’s unclear if such a limit is exclusive to M-PESA or if it will be extended across other mobile money wallets within the country.
