Monday, June 12, 2006

Money transfer gets cheaper

Western Union has announced generous price reductions (a.k.a. ”crushed prices”) in the cost money transfer within Kenya and East Africa. E.g. where it used to cost 2,250 to send 20,000 shillings and 3,650 to send 50,000 shillings within Kenya, it will now cost 700 and 1,800 respectively, meaning price reductions of between 50 and 70%.

7 comments:

gathinga said...

This is amazing. I have never actually thought about it. that it used to cost more than 10% to send money around kenya. how much then would it cost to send to the US, Europe..no wonder these jamaas have so much cash run classic ads

Prousette said...

They have made a huge stash from the charges so far and still will be, even with the lower rate.

Mashatall said...

Thats the reason why we need to upgrade our ATM networks, and have them interlinked so thta you can withdraw money from any ATM countrywide. Banks would stand to make more money if they could charge extra for non customers to use their ATMS, guess that might take Kimunya to issue a notice in the Gazette for the banks to get their act together.
So the Armenian bros were finally deported from Kenya? whats happening Banks? noe the uchumi saga is forgotten as the media is spin doctored into a whole different direction !! Kirubi walks off scot free after milking Uchumi dry to purchase Capital, and tyhe wananchi are left holding junk stocks.Anybody willing to sell their Uchumi shares for like 2 KSHS/share? will buy at that price !!!

Spoiler said...

I am glad the Western Union rates reduced but they still cannot compete with the informal Somali banks where most of the money coming into the country comes in. These charge 6 dollars per hundred dollars sent and they are faster than any Western Union service. Problem, most banks located in Eastleigh and youve got to know someone who knows someone.

bankelele said...

gathinga: Was and still is quite pricey

Prousette: True, but their reach is tremendous, and WU is quite useful in emergencies

Mashatall: Banks have shown some cooperation on ATM's (Kenswitch and Pesapoint) but not on money transfer - though several banks offer WU service

Spoiler: The Somali system requires trust & faith and as you said - youve got to know someone who knows someone.

Mimmz said...

Thank goodness for competition! It's the only reason WU has reduced its prices. Kenyans are now in the business of money transfers for much cheaper than that.

transfer money said...

Nice information for transfer money online. it's facilitate foreign exchange business with the help of transfer money services and also transfer to overseas.

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