More Kenyan banks have joined PesaLink’s discounted pricing initiative, making interbank transfers significantly cheaper as lenders intensify competition with mobile money services.
According to Business Daily, 19 banks and microfinance institutions now offer the new pricing model, nearly doubling participation in just two months. Under the revised structure, transfers of up to KES 1,000 are free, while transfers between KES 1,001 and KES 999,999 attract a flat fee of KES 20, replacing the previous tiered pricing that could reach KES 250.
Absa Bank Kenya and Stanbic Bank Kenya are among the latest institutions to adopt the new rates, joining KCB Bank Kenya, Diamond Trust Bank, Prime Bank and several other lenders. However, some major banks, including Equity Bank Kenya, Co-operative Bank of Kenya, NCBA Bank Kenya, Standard Chartered Bank Kenya and I&M Bank, have yet to implement the discounted fees.
The initiative, branded “Tuma Direct na Mbao,” is being coordinated through PesaLink, the interbank payment platform operated under the Kenya Bankers Association. The move is expected to strengthen competition with mobile money by making bank-to-bank transfers more affordable, particularly for low and mid-value transactions.
PesaLink is also working to simplify payments by introducing easier identifiers such as phone numbers and national ID numbers, reducing the need for customers to enter full bank account details.
