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Safaricom waives M-Pesa fees for Sh1bn drought funds

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Safaricom CEO Peter Ndegwa. PHOTO | POOL

Safaricom #ticker:SCOM will wire Sh1 billion government funds to households in drought-stricken counties free of charge through its mobile money platform M-Pesa.

The deal with the State Department of Public Service, Gender, Senior Citizen Affairs and Special Programmes will see more than 360,000 homes in the 23 arid and semi-arid lands (ASAL) counties receive Sh3,000 monthly.

Public Service Secretary Prof Margaret Kobia hailed the partnership, noting that digital financial systems enhance accountability.

“Cash transfers have proven as the most effective way to reach vulnerable persons in times of emergency. The use of digital financial systems such as M-Pesa will not only ensure we continue supporting cashless transactions as a recommended measure in the fight against the Covid-19 pandemic but will also enhance efficiency and accountability,” said Prof Kobia.

Safaricom chief executive officer Peter Ndegwa said the telco has also waived transaction fees for the beneficiaries.

“We are happy to partner and support the government’s nationwide efforts to provide immediate relief to the affected households in ASAL counties. Besides facilitating direct cash transfers through our M-Pesa bulk payment service, we have waived transaction fees (transfer and withdrawal). This will enable the beneficiaries to receive the intended full amount of Sh3,000,” said Mr Ndegwa.

The telecom charges Sh51 and Sh50 to transfer and withdraw, respectively, Sh3,000. Unregistered users are charged Sh112.

The government’s money transfer programme is part of its intervention efforts after President Uhuru Kenyatta declared drought in parts of the country a national disaster in September.

Over 2.5 million people in the country face food insecurity due to insufficient rains, which is further compounded by the damage caused by desert locust invasions, especially in northern Kenya.

Development partners, including the World Food Programme, Unicef, Oxfam Kenya, Red Cross, Concern Worldwide, Shikilia coalition, among others, have also launched cash transfers schemes to supplement the State efforts.