KCB Bank Introduces New Transaction Charges

 

The Kenya Commercial Bank (KCB) has introduced charges for payments made from M-Pesa to its paybill number 522533.

In a notification to its customers, the lender stated normal M-Pesa paybill charges will apply effective Wednesday, July 26.

“Dear Customer, effective 26/07/23, normal M-PESA paybill charges will apply for payments made from M-PESA to KCB paybill 522533. Payments made from the KCB APP & *522# remain free,” the bank said in a notice seen by TUKO.co.ke.

The Lipa na M-Pesa service

The Lipa na M-Pesa service has simplified personal and business transactions in Kenya.

Paybill is a cash collection service that allows businesses to collect money from customers through M-Pesa.

Safaricom paybill charges vary with the amount of money being transacted.

“Please note it will depend on the amount you are sending,” KCB said in a comment to TUKO.co.ke.

Below are M-Pesa paybill tariffs, which became effective in January 2023 as listed by Safaricom. The charges are shared between customers and traders.

Band (KSh)	Charges on the customer (KSh)	Charges on the business (KSh)	Total charges (KSh)
1-49	0	0	0
50-100	0	0	0
101-500	4	0	4
501-1,000	9	0	9
1,001-1,500	9	5	14
1.501-2,500	12	7	19
2,501-3,500	12	7	19
3,501-5,500	16	17	33
5,001-7,000	16	24	40
7,501-10,500	17	29	46

Excise duty on bank to mobile money transactions

In January, the Central Bank of Kenya (CBK) announced changes to the mobile money transfer charges waived during the COVID-19 pandemic.

The new changes attracted a 20% excise tax on all transfers from banks to M-Pesa, Airtel Money, and T-Kash.

Commercial banks notified customers of the new charges from Sunday, January 1, 2023.