CBK tips new digital shilling to take on high M-Pesa charges

An attendant makes an M-Pesa transaction for a customer. PHOTO | JOSEPH KANYI | NMG

The proposed Central bank digital currency (CBDC) will help bring down the transaction fees currently charged on digital payments in what could make it the biggest competitor to Kenya's mobile money sector.

The banking regulator says the virtual currency that will be exchangeable on a one-to-one basis with physical cash would work in a similar way to the existing mobile money product in the market, with users able to transfer it between wallets or accounts.

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