The number of banks offering discounted Pesalink transfer charges has risen to 19, nearly doubling in less than two months, as lenders intensify efforts to win a larger share of everyday retail payments.
Under the revised pricing model, customers can send up to Sh1,000 free of charge, while transfers above that amount, up to Sh999,999, attract a flat fee of Sh20. The new rates replace the previous tiered charges that could reach Sh250 and apply to transactions between participating financial institutions.
The initiative, branded “Tuma Direct na Mbao,” is designed to make bank-to-bank transfers more competitive against mobile money services, particularly M-Pesa, which continues to dominate person-to-person payments.
The number of participating banks has grown from 10 to 19, with Absa Bank Kenya and Stanbic Bank Kenya among the latest major lenders to sign up. They join KCB Bank Kenya, Diamond Trust Bank, and Prime Bank, which adopted the lower tariffs earlier this year.
Other institutions that have joined the programme include HFCB, Victoria Commercial Bank, Access Bank Kenya, Citibank N.A Kenya, Commercial International Bank, and Faulu Microfinance Bank. Completing the list are GT Bank, SBM Bank, Paramount Bank, Credit Bank, Ecobank Kenya, Bank of Baroda, Choice Bank, and Caritas Microfinance Bank.
The flat-fee structure marks a departure from the traditional value-based pricing commonly used for bank transfers. By offering predictable and lower transaction costs, lenders hope to attract more person-to-person transfers that have largely been dominated by telecom operators.
M-Pesa currently offers free transfers of up to Sh100, charges Sh7 for amounts between Sh101 and Sh500, Sh33 for transfers ranging from Sh501 to Sh1,000, with fees rising gradually to Sh108 for the maximum transaction limit of Sh250,000. Under the new Pesalink pricing, bank transfers become a more affordable option for many low- and mid-value transactions.
Banks have also been expanding digital payment options through pay bill services as they diversify beyond traditional card-based payment systems.
Pesalink Chief Executive Gituku Kirika said discussions are underway to bring more lenders into the pricing framework, with the long-term goal of establishing an industry-wide tariff.
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He said the revised pricing is intended to make digital payments more affordable, transparent and easier for customers to understand, while encouraging higher transaction volumes.
Some of Kenya’s largest lenders, including Equity Bank Kenya, Co-operative Bank of Kenya, Standard Chartered Bank Kenya, NCBA Bank Kenya, and I&M Bank, are yet to adopt the new pricing.
Operated by Integrated Payment Services Limited (IPSL) under the Kenya Bankers Association, Pesalink has grown into an instant payment network linking more than 195 financial institutions, including banks, saccos and fintech wallets. The platform is also working to integrate telecom operators as part of wider interoperability efforts.
Pesalink currently processes more than one million transactions each month, with daily transaction values ranging between Sh5 billion and Sh6 billion.
The platform is also developing simpler payment methods by allowing customers to initiate transfers using identifiers such as mobile phone numbers or national identity card numbers, replacing the need to input bank account details.
