Sharing ATMs 'would reduce charges' in Kenya

Oct 27, 2011

Sharing ATMs could make it easier for people living in Kenya to access their cash, some of the country's bank experts believe.

It has been claimed that if financial institutions were to share the nation's cash point infrastructure, they could reduce the charges that accompany transactions by over 50 percent, Business Daily reports.

Currently, individuals are charged between Sh30 (21 euro cents) and Sh40 every time they use the machines.

David Ferrand, Director of Financial Sector Deepening Kenya, told the newspaper that if banks share the infrastructure it will make them more efficient.

"There are large fixed costs associated with ATMs and therefore the cost per transaction can only come down when machines are well-utilised," he stated.

According to the Central Bank of Kenya, there were 1,979 commercial bank-owned ATMs at the end of 2010, compared with 1,717 in December 2009.

Earlier this year, it was announced that citizens using the country's M-Pesa mobile money service would be able to withdraw cash of any currency from ATMs all over the world.ADNFCR-2976-ID-800778330-ADNFCR