Co-op Bank M-Pesa to bank transfer
Photo: Co-operative News
Readtime:1 mins

Co-operative Bank of Kenya customers will not pay M-Pesa to bank transfer fees after the bank announced it would terminate the charge that caused a public outcry on Twitter yesterday.

In a statement posted on the official Twitter account, the bank confirmed charging Ksh 42.00 on money transfers from M-Pesa to Co-op Bank accounts using its 400200 Paybill. The statement also said that “all the money related to this charge” had been reversed, with the amounts to be deposited in affected accounts.

At the start of the pandemic, the Central Bank of Kenya directed financial institutions to adopt some changes that were meant to shield the ordinary Kenyan from financial pains.

For instance, mobile money companies did not charge any fees for sending under Ksh 1000 shillings. Banks were also directed to drop mobile money to bank deposits.

As the pandemic progressed, some key changes were also made. The zero fees for transferring Ksh 1000 among mobile phone wallets were dropped.

M-PESA would also go ahead to adjust its rates, which started in January 2021.

However, mobile money to bank transfer fees was not reintroduced, and have remained so to date.

Some banks, like the Co-operative Bank, did not enforce the regulation, though. The institution has been in the spotlight for charging customers M-Pesa deposit fees without even alerting them.

Related:   Equity Bank Releases Equity Mobile App To Replace EazzyBanking

The bank has, for a long time, been charging customers Ksh 42 when they move cash from the mobile money wallet to their accounts.

Things escalated yesterday when Twitter users demanded to know why the lender was doing this to customers. All responses, which, as you know, are filled with PR cues, did not cut it for the ensuing frustration.

Today, however, Cooperative Bank has made a U-turn on this decision following fierce backlash from customers on Twitter.

Banks have also been pressing the CBK to reverse free mobile money to bank transfers, but any developments have not been made so far.

About the author

Staff news writer for The Venture Brat

VB Reporter

Staff news writer for The Venture Brat