KCB Pushes for Lower Transaction Costs as Digital Payments Grow

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KCB Pushes for Lower Transaction Costs as Digital Payments Grow

KCB Bank says smarter payment choices can help Kenyans reduce unnecessary fees and make every shilling count.

For many Kenyan households, the cost of a transaction does not end with the amount paid for a product or service.

Moving money between accounts, mobile wallets and payment platforms can add extra charges, especially when consumers use several channels for a single payment.

As digital payments become part of everyday life, KCB is calling for greater focus on the cost and efficiency of moving money.
The bank says consumers should be more deliberate about where they make payments and the fees they incur.

Digital Payments Continue to Expand

Central Bank of Kenya data cited by KCB shows registered mobile money accounts reached 95.31 million in August 2026.
That was up from 82.43 million accounts in December 2024.

The number of active mobile money agents also reached 563,605, while monthly agent cash-in and cash-out transactions were worth Sh761.13 billion in August.

However, the growth in digital accounts has not translated into higher transaction volumes.

The CBK’s 2025 Bank Supervision Annual Report shows monthly mobile money transactions fell from 309.28 million in 2024 to 217.58 million in 2025.
The value of transactions declined at a slower rate, from Sh753.45 billion to Sh722.53 billion.

The figures point to a shift in how Kenyans use digital payment channels as households become more conscious of their spending.

The Cost of Moving Money

According to KCB Director of Digital Financial Services Angela Mwirigi, consumers need to look beyond the convenience of digital payments.

“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,” she said.

The bank is encouraging customers to consider whether they need to move money between channels before making a payment.

For example, a customer may transfer money from a bank account to a mobile wallet before paying a bill or merchant.

KCB says some of these extra steps can create unnecessary transaction costs.
The bank is therefore encouraging customers to use its mobile banking platform to make payments directly where the service is available.

Making Every Cent Count

The push forms part of KCB’s Common Cents campaign, which encourages Kenyans to develop smarter everyday money habits.
The campaign focuses on reducing unnecessary spending and making more deliberate financial decisions.

“Every single cent I make is mine. How is this cent also working?” Mwirigi said.
The message is that financial discipline is not only about how much money a person earns.

It is also about how much they spend on fees, how they move money and whether each transaction adds value.

Smarter payment choices can help consumers reduce unnecessary costs while gaining better visibility over their spending.

Businesses Also Feel the Impact

The cost of transactions is particularly important for businesses that make frequent digital payments.

Small businesses may pay suppliers, employees and service providers through different channels. Each additional transfer can increase the overall cost of doing business.

The Central Bank has also identified lower transaction costs as a priority under Kenya’s National Financial Inclusion Strategy 2025–2028.

Person-to-merchant payments have grown significantly and now account for about 30 per cent of transaction volumes.

The regulator has also proposed measures to make digital payments more affordable and accessible.

Digital Finance Must Deliver More Value

Kenya’s digital payments ecosystem has transformed how consumers and businesses move money.

However, convenience alone is no longer enough.
As more transactions move online, consumers are increasingly asking how much each payment costs and whether there is a cheaper way to complete it.

For KCB, the answer lies in making payment channels more integrated while encouraging customers to avoid unnecessary steps.

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

As Kenya’s digital economy grows, the focus on transaction costs could become increasingly important for households and businesses trying to make every shilling work harder.

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