- CBK made the announcement regarding reintroduction of the charges in December last year.
- But CBK in a press release issued on December 6 said the new charges that were to take effect on January 1 would be lower than the prior charges.
Image: FILE
The High court has declined to extend orders compelling Safaricom and CBK to suspend reintroduction of charges for transactions between mobile money wallet and bank accounts.
Justice Mugure Thande declined to extend the order on the grounds that the Central Bank of Kenya and other parties are yet to be joined in the proceedings.
When Moses Wafula filed the case in court, he sued Safaricom and the Attorney General making them the only respondents in the case.
He later filed an application in July 2021 seeking to have the CBK, Treasury CS and Competition Authority of Kenya joined as respondents in the case.
That application is still pending for ruling before Justice Anthony Mrima.
On Monday, senior counsels John Ohaga representing Safaricom and George Oraro representing CBK opposed the extension of the order.
Ohaga told Justice Thande that the absence of the main file caused the grant of the order, which in result has caused significant confusion in the marketplace.
He said there is difficulty in compliance with the order.
When the temporary order was issued in December last year, CBK as a regulator of the banks and Mpesa platform was required to direct the banks to suspend the reinstated charges.
"There is difficulty in compliance with the order. CBK is yet to be made a party to the case. There are at least three intended respondents who have not yet been joined as respondents. The ruling on the same is pending before Mrima," Ohaga said.
The main file is with Mrima.
Justice Thande directed that the matter be placed before Mrima and the same be mentioned on March 8.
CBK made the announcement regarding reintroduction of the charges in December last year.
The transaction charges were waived in March 2020 as part of Covid-19 emergency measures to help ease the cost of living.
But CBK in a press release issued on December 6 said the new charges that were to take effect on January 1 would be lower than the prior charges.
“The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent, and mobile money wallet to bank account by on average up to 47 per cent,” CBK said.