19 Kenyan Banks that Reduced PesaLink Transfer Fees

Nineteen Kenyan banks and microfinance banks have reduced PesaLink transfer charges, nearly doubling the number of participating lenders in less than two months as competition intensifies for a larger share of the country’s fast-growing digital payment market.

The participating institutions now offer free PesaLink transfers of up to KES 1,000 and charge a flat KES 20 fee for transactions above KES 1,000, replacing previous fees that reached as high as KES 250 depending on the bank and transaction value.

The revised pricing structure applies to transfers made between all participating financial institutions, regardless of whether the sending and receiving banks are the same or different.

Among the participating institutions are 16 commercial banks and three microfinance banks, including five of Kenya’s ten largest lenders by assets.

The reduced charges are expected to encourage more customers to shift from cash transactions and alternative payment channels to instant account-to-account transfers.

Banks Offering Lower PesaLink Charges

The 16 commercial banks that reduced their PesaLink transfer fees include:

• Absa Bank Kenya
• Access Bank Kenya
• Bank of Baroda
• Citibank N.A. Kenya
• Commercial International Bank (CIB)
• Credit Bank
• Diamond Trust Bank (DTB)
• Ecobank Kenya
• Guaranty Trust Bank (GT Bank)
• HFC
• KCB Bank Kenya
• Paramount Bank
• Prime Bank
• SBM Bank Kenya
• Stanbic Bank Kenya
• Victoria Commercial Bank

The three participating microfinance banks are:

• Caritas Microfinance Bank
• Choice Microfinance Bank
• Faulu Microfinance Bank

Customers of these institutions can now send up to KES 1,000 at no cost while paying only KES 20 for larger transactions through the PesaLink platform.

Pressure Mounts on Larger Banks

Despite the growing adoption, several major lenders have yet to introduce the discounted pricing model. Among the notable absentees are five of Kenya’s ten largest banks:

• Equity Bank Kenya
• Co-operative Bank of Kenya
• NCBA Bank Kenya
• I&M Bank
• Standard Chartered Bank Kenya

Their absence means customers of these institutions may continue paying higher PesaLink charges until similar pricing adjustments are introduced.