Absa Bank Kenya has announced changes to transaction limits on its *224# USSD platform, citing security and customer safety as the primary reasons for the adjustment. The bank assured customers that higher transaction limits remain unchanged on other platforms, including the Absa App, Online Banking, and Pesa Link.
The updated limits include:
- Account to Mobile Wallet Transfers: A maximum of KES 150,000 per transaction and a KES 300,000 daily limit.
- Absa-to-Absa Transfers: A daily maximum limit of KES 500,000.
Absa clarified that these changes only affect the USSD platform and do not apply to its internet banking channels. Customers can still transact up to their maximum limits using other banking options.
Absa Bank’s Statement
In a statement published by TechTrendsKE, the bank said:
“This decision was taken purely in the interest of enhancing the security and safety [of] customer transactions. Customers can still transact to their maximum limit of 500k on our other channels including the Absa App, Absa Online Banking and Pesa Link. Our liquidity ratios are well above regulatory requirements.”
The bank highlighted that the adjustment to the USSD platform is a precautionary measure to ensure tighter security controls. It added that customers using internet banking via the Absa App and website are unaffected by the new limits, retaining the ability to transact up to KES 500,000 per day.
Why the Changes Matter
The move comes amid growing conversations around the security of digital banking channels. USSD services, while accessible to a broad customer base, may be more prone to vulnerabilities. Though Absa cited security as the primary driver for the limit changes, it remains unclear whether this is tied to broader concerns about safeguarding customer funds or simply streamlining services on the USSD platform.
Adding to the speculation, recent rumors of cash flow challenges affecting some banks have fueled public uncertainty. The announcement from Absa, particularly regarding transaction limits, caught many Kenyans off guard, with some questioning whether it was a subtle acknowledgment of broader liquidity concerns. However, Absa has strongly refuted such claims, emphasizing that its liquidity ratios remain well above regulatory requirements.
Customer Options
To mitigate any inconvenience, Absa encouraged customers to use its alternative platforms for higher-value transactions. These include:
- Absa Mobile App
- Absa Online Banking
- Pesa Link
Financial Stability Assured
Absa also addressed any concerns about its financial position, stating that its liquidity ratios remain well above regulatory requirements, reflecting the bank’s strong financial health.
This decision reflects a growing trend among banks to prioritize security on less sophisticated platforms while steering customers towards digital and app-based solutions. For users relying on USSD, the limits may necessitate adjustments in transaction behavior, especially for high-value transfers.
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