- Kenya Commercial Bank (KCB) said normal M-Pesa paybill charges will apply effective Wednesday, July 26
- Paybill is a cash collection service that allows businesses to collect money from customers through M-Pesa
- Customers transacting KSh 101 to KSh 500 will pay KSh 4, while transactions between KSh 501 and KSh 1,000 will cost KSh 9
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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.
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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.
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