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Airtel increases mobile money transaction fees


Airtel increases mobile money transaction fees

Wednesday October 25 2023

A customer at a Airtel Money shop. PHOTO | FILE

Users of Airtel Money will now pay more to send and receive cash across other networks after the telco reviewed its tariffs, passing the burden of a new tax to its subscribers.

The telco that had 17.9 million subscribers in the three months to June announced yesterday that users withdrawing money between Sh101-Sh500 on other networks would spend Sh25 now, up from Sh22.

However, sending money from Airtel to Airtel will remain free of charge. The review comes after the government introduced a 15 percent excise duty tax on transaction fees charged on money transfer services by cellular phone providers.

Anne Kinuthia-Otieno, managing director at Airtel Money Kenya, said inasmuch as the telco has reviewed its mobile money transaction tariffs for transactions across other networks, the rates are still affordable compared to what its competitors are offering in the market.

“It is worth noting that additionally, the withdrawal charges and cost of transferring money to other networks will remain significantly affordable compared to current market rates,” said Ms Otieno in a statement yesterday. “Airtel remains dedicated to offering unparalleled customer experience with innovative solutions.”

Airtel users sending between Sh501 and Sh1,000 will, from yesterday, get charged Sh11 up from Sh10 to send the money to other users.

Subscribers from other telcos withdrawing between Sh501 and Sh1,000 from Airtel Money agents will also pay about Sh25, up from the current Sh23.

Airtel Kenya made a net loss of Sh1.7 billion in the year ended December 2021 on higher costs, according to disclosures by its ultimate parent firm, Bharti Airtel Limited.

The company’s net loss grew 7.7 percent from Sh1.6 billion a year earlier despite growth in sales.

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