The Central Bank of Kenya (CBK) has announced a set of emergency measures that will facilitate increased use of mobile money transactions instead of cash.
In a statement Monday, CBK says while the immediate objective is to reduce the risk of transmission of COVID-19 (Coronavirus) by handling bank notes, this will also reduce the use of cash in the economy over the medium term.
The measures which will apply from midnight tonight follow a meeting with Payment Service Providers (PSPs) and will remain in place until June 30, 2020.
The measures include no charges for mobile money transactions upto Ksh.1,000; transaction limit for mobile money increased to Ksh.150,000; daily limit for mobile money transactions is increased to Ksh.300,000 and mobile money wallet limit is increased to Ksh.300,000.
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Other measures are elimination of monthly total limit for mobile money transactions; current tariff for mobile money transactions for Ksh.70,000 will apply for transactions upto Ksh.150,000 and PSPs and commercial banks will eliminate charges for transfers between mobile money wallets and bank accounts.
“The current frame works on anti-money laundering and countering financing of terrorism (AML/CFT) will continue to apply and CBK will closely monitor the implementation of these emergency measures.” said the statement
Meanwhile, the temptation to hike prices to take advantage of panic purchases has seen the Competition Authority of Kenya sanctioning Cleanshelf Supermarkets.
On Sunday President Uhuru Kenyatta issued a stern warning to businesses not to hike price of commodities or hoard goods to take advantage of panic buying occasioned by the confirmation of COVID19 in Kenya.
Hours later, Cleanshelf Supermarkets became the first to be flagged for increasing the prices of the much needed sanitizers.
The Competition Authority of Kenya has ordered Cleanshelf to contact and refund all those who purchased 960 pieces of sanitizers on Sunday whose price was hiked from Ksh. 800 to Ksh. 1,000.
In a statement, CAK says the price adjustment was in contravention of section 56(1) of the Competition Act No.12 of 2010, which states.
” It shall be an offence for a person in trade in connection with the supply or possible supply of goods or services to another person, to engage in conduct that is, in all the circumstances, unconscionable.”
Confirming the allegations, Cleanshelf Supermarkets said the price increases happened in their Ruaka Branch insisting it was an individual error adding that disciplinary action has been taken on the staff member who orchestrated it.
This even as the search for hand sanitizers in the city continues.