KCB to M-Pesa Transactions 2024: Charges, Transfer To Mpesa, Send To KCB, And More
Discover how to transfer money seamlessly between KCB and M-Pesa accounts. This guide provides step-by-step instructions and highlights the recent changes in charges.
In Kenya's fast-paced world of financial transactions, the synergy between KCB (Kenya Commercial Bank) and M-Pesa has become a standard feature. These two giants in the financial sector have made it incredibly convenient for Kenyans to manage their money, whether depositing funds from M-Pesa to KCB or vice versa. This article delves into the intricacies of KCB to M-Pesa transactions, including charges, step-by-step instructions, and even a clever hack to save money.
Let us now get started
KCB and M-Pesa Partnership
KCB Bank Kenya Limited, under the regulation of the Central Bank of Kenya, stands as a stalwart in Nairobi's financial landscape. On the other hand, M-Pesa has revolutionized mobile banking in Kenya, offering users the ability to save and transfer funds with unparalleled convenience. For many Kenyans, having accounts with both institutions is a way of life. But how do you seamlessly transfer money between them? Let's dive into the details.
How to Withdraw Money from KCB to M-PESA Account
Transferring money from your KCB account to your M-PESA wallet is a straightforward process:
- Dial *522# on your phone.
- Enter your M-Benki PIN to initiate the transaction.
- Select "MyKash" from the menu and then choose "M-Pesa."
- Input the amount you wish to send; the total cost of the transaction will be displayed.
- Confirm the details, and upon acceptance, you'll receive an SMS confirming the successful deposit from your bank account to your M-PESA account.
How to Send Money from M-PESA to KCB Account
Conversely, if you want to transfer money from M-PESA to your KCB account, follow these simple steps:
- Access your M-PESA menu.
- Choose "Lipa Na Mpesa."
- Enter the KCB PayBill number: 522522.
- Input the recipient's KCB account number.
- Specify the amount to be sent.
- Enter your M-PESA PIN.
- Confirm the details and hit the send button.
KCB and M-Pesa Charges
It's worth noting that the Central Bank of Kenya recently announced changes to the fees associated with these transactions. Previously, Kenyans enjoyed free bank-to-mobile money transfers for nearly three years. However, as of 1 January 2023, these transactions now incur fees. The charges vary based on the transaction amount, so let's break them down:
For transfers from KCB to M-PESA/mobile money wallet:
| Range | Old Rate (KES) | New Rate (KES) |
|---|---|---|
| 1 – 100 KES | 54.32 | Free |
| 101 – 500 KES | 54.32 | 11.20 |
| 501 – 1,000 KES | 54.32 | 13.60 |
| 1,001 – 1,500 KES | 62.88 | 16.00 |
| 1,501 – 2,500 KES | 62.88 | 26.00 |
| 2,501 – 3,500 KES | 62.88 | 38.00 |
| 3,501 – 5,000 KES | 62.88 | 50.00 |
| 5,001 – 7,500 KES | 62.88 | 64.00 |
| 7,501 – 20,000 KES | 62.88 | 76.00 |
| 20,001 – 150,000 KES | 62.88 | 78.00 |
On the other hand, Safaricom has also adjusted its paybill charges for M-PESA transactions. Here are the updated charges:
| Max band (KES) | Min band (KSH) | Current tariff (KES) | New tariff (KES) |
|---|---|---|---|
| 1 | 100 | 0 | 0 |
| 101 | 500 | 23 | 4 |
| 501 | 1,000 | 23 | 9 |
| 1,001 | 1,500 | 35 | 14 |
| 1,501 | 2,500 | 35 | 19 |
| 2,501 | 3,500 | 56 | 24 |
| 3,501 | 5,000 | 56 | 33 |
| 5,001 | 7,500 | 85 | 40 |
| 7,501 | 10,000 | 85 | 46 |
| 10,001 | 15,000 | 113 | 55 |
| 15,001 | 20,000 | 113 | 60 |
| 20,001 | 25,000 | 113 | 65 |
| 25,001 | 30,000 | 113 | 78 |
| 30,001 | 35,000 | 113 | 87 |
| 35,001 | 40,000 | 202 | 96 |
| 40,001 | 45,000 | 202 | 105 |
| 45,001 | 50,000 | 202 | 105 |
| 50,001 | 150,000 | 210 | 105 |
These changes mean there will be fees for sending money from your KCB account to M-PESA and from M-PESA to your bank account. Safaricom's adjustments have also significantly reduced some paybill charges, making transactions more affordable.
How Long Does It Take to Transfer Money from KCB to M-Pesa?
The time it takes to transfer money from KCB to M-Pesa depends on your method. The money will be transferred immediately if you transfer from KCB to M-Pesa using the KCB Mobile Banking app or the KCB website. If you transfer money from KCB to M-Pesa using an ATM, the money will be transferred within 24 hours.
Advantages of Having Both a KCB and M-Pesa Account
KCB and M-Pesa are two of the most popular financial institutions in Kenya. KCB is a commercial bank, while M-Pesa is a mobile money service. While many people choose to have one or the other, there are several advantages to having both a KCB and M-Pesa account.
Convenience:
One of the most significant advantages of having a KCB and M-Pesa account is the convenience. KCB has a vast network of branches and ATMs, while M-Pesa has a vast network of agents. This means that you can easily access your money no matter where you are in Kenya. In addition, KCB and M-Pesa are integrated, so you can quickly transfer money between the two accounts. This is incredibly convenient if you need to pay for something using M-Pesa but need more money in your wallet.
Affordability:
Another advantage of having both a KCB and M-Pesa account is the affordability. KCB offers a variety of affordable banking products, such as savings accounts and loans. M-Pesa offers various affordable services, such as money transfers and bill payments. In addition, many banks in Kenya charge fees for transactions such as ATM withdrawals and money transfers. However, KCB customers can use M-Pesa agents to make these transactions for free.
Security:
KCB and M-Pesa are both highly secure financial institutions. KCB uses various security measures to protect its customers' money, such as fraud detection systems and encryption. M-Pesa also uses security measures to protect its customers' money, such as PINs and two-factor authentication.
READ ALSO: How to Remove Call Diverts on Safaricom Number In Kenya: A Step-by-Step Guide
Final Thoughts
In a financial landscape like Kenya's, understanding the nuances of transferring money between KCB and M-Pesa is crucial. The partnership between these two institutions has made banking more accessible and convenient for Kenyans. As you navigate these changes in fees and procedures, remember to choose the method that best suits your financial needs. And if you want to avoid transaction charges when depositing money into KCB from M-PESA, remember the handy hack: open a KCB M-Benki account via M-PESA to enjoy fee-free transactions. In conclusion, whether you're a seasoned financial expert or a newcomer to the banking world, these guidelines will help you make the most of KCB to M-Pesa transactions, ensuring your financial journey in Kenya is as smooth as possible.
