KCB Pushes for Lower Digital Transaction Costs as More Kenyans Embrace Mobile Payments

KCB is pushing for lower transaction costs as more Kenyans embrace digital payments for everyday purchases, bill payments, school fees and other services.

Speaking on the growing use of digital payment channels, KCB Director of Digital Financial Services Angela Mwirigi said the bank is focusing on expanding the ways customers can access and use its services.

“The point is what we are spending most of our time now doing is scaling up not just the services, but the channels within which you can use those services,” Mwirigi said.

Central Bank of Kenya (CBK) data cited by KCB shows that the number of registered mobile money accounts reached 95.31 million in August 2026, up from 82.43 million in December 2024.

At the same time, 563,605 active mobile money agents processed cash-in and cash-out transactions worth Ksh 61.13 billion in August.

KCB Pushes for Lower Digital Transaction Costs

Despite the expansion of digital payment services, transaction volumes have not grown at the same pace.

The CBK’s 2025 Bank Supervision Annual Report shows that monthly mobile money transaction volumes fell from 309.28 million in 2024 to 217.58 million in 2025.

However, the value of those transactions declined more modestly, dropping from Ksh 753.45 billion in 2024 to Ksh 722.53 billion in 2025.

Against this backdrop, KCB’s Common Cents campaign is encouraging Kenyans to develop better money habits and avoid unnecessary charges.

One practice highlighted by the campaign is transferring money from a bank account to a mobile wallet before making a payment, which can add another transaction and an associated cost.

Mwirigi urged consumers to pay closer attention to how they use their money and the value they get from each transaction.

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Consequently, KCB is working to bring more services together through its mobile banking platform, allowing customers to pay bills, school fees and other expenses directly from their bank accounts instead of making additional transfers.

A photo collage of Angela Mwirigi, KCB director of digital financial services. PHOTO/ Angela Mwirigi

CBK Reviews Digital Transaction Charges

Such direct payment options can help consumers save time, reduce transaction costs and gain a clearer view of where their money goes.

Meanwhile, the push for lower charges comes as the CBK reviews the cost of digital transactions.

The regulator has revised the maximum charges for bank-to-wallet transfers, with fees ranging from Ksh 11 for transfers between Ksh 101 and Ksh 500 to Ksh 35 for transactions between Ksh 2,501 and Ksh 3,500, depending on the provider.

Under the National Financial Inclusion Strategy 2025–2028, the CBK has also identified lower transaction costs and wider use of digital payment services as key priorities.

Person-to-merchant payments now account for about 30 per cent of transaction volumes, while the regulator has proposed peer-to-peer fee caps to help reduce transfer costs.

Mwirigi said the shift towards digital finance should focus not only on speed but also on the value consumers receive from each payment.

“The future of digital finance, therefore, may not simply be about making payments faster. It is about making every payment count,” she said.

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Although 83 per cent of adults have a financial account, millions of Kenyans still rely on cash, particularly in rural areas where transaction costs can reach 6.9 per cent of the amount transferred.

As digital payments become increasingly integrated into daily life, the push for lower charges could help consumers get greater value from every transaction while avoiding unnecessary costs.

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Photo of a KCB branch. PHOTO/KCB.