Absa Bank Kenya Slashes Mobile Wallet Transfer Limits by 70%

In a significant policy shift that impacts thousands of customers, Absa Bank Kenya has announced substantial reductions to its account-to-mobile wallet transfer limits, citing enhanced security measures as the driving force behind the decision.

The bank has implemented two key changes to its transaction framework:

• Maximum per-transaction limit reduced from Ksh.500,000 to Ksh.150,000
• The new daily transaction ceiling set at Ksh.300,000
• Absa-to-Absa account transfers capped at Ksh.500,000 daily

While the 70% reduction in mobile wallet transfer limits represents a significant change, Absa has emphasized that customers retain access to higher transaction limits through alternative channels. The bank confirms that the Ksh.500,000 maximum limit remains available through:

• Absa Mobile App
• Absa Online Banking
• Pesa Link services

“This decision was taken purely in the interest of enhancing the security and safety of customer transactions,” Absa Bank stated in its official communication to customers. The bank also moved to reassure stakeholders about its financial stability, noting that its “liquidity ratios are well above regulatory requirements.”

This development follows several strategic moves by Absa Kenya in recent months, including:

• The launch of Kenya’s first metallic infinite card in partnership with Visa (September 2024)
• The opening of their inaugural La Riba branch in Nairobi (February 2024)

The adjustment signals a growing trend in Kenya’s banking sector towards enhanced digital transaction security, particularly as mobile money transfers continue to gain prominence in daily banking operations. While some customers may need to adjust their transaction patterns, the bank’s emphasis on alternative channels suggests a strategic push toward its digital platforms.

As the financial sector continues to evolve, this move by Absa Bank Kenya highlights the delicate balance between convenience and security in digital banking services. The impact of these changes on customer behavior and mobile money transactions will likely be closely watched by industry observers and competing financial institutions.