Co-Operative Bank Axes M-PESA to Bank Charges Following Public Outcry

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During the start of the pandemic, the CBK 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 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 KES 1000 among mobile phone wallets was dropped.

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

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

Some banks did not enforce the regulation, though, and one of them is Cooperative. The institution has been on the spotlight for charging customers erroneous fees without even alerting them.

The bank has, for a long time, been charging customers KES 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.

This follows a statement from the bank, which reads as follows:

The KES 24 charge we had placed on money transfers from M-PESA to some accounts, using Paybill 400200, has been reversed.

We are also reversing all the money related to this charge that we had debited the few affected accounts. We appreciate that you raised your concern with us.

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

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Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]

8 COMMENTS

  1. Sisi tulihama uko they lie to users its free only to find they have deducted about 72.00

  2. These guys even charge for every little thing, even sms alerts. And then they lie to their customers with their moto: “We are You”. Please, gime a bresk! I voted with my feet a long time ago.

  3. Oooh please cop bank its a no no for me, money was withdrawn from my account in kenya while I was abroad my bank statement showed another name with the same account number went to my branch after I travelled back home and all they were very arrogant.”ukitaka change your pin or funga account”…withdrew all my money after that.

  4. They are also the only ones with an app that was probably created by stone age tech gurus… When you’re in a fix is specifically when the app stops working completely.

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