SBM Bank and PesaLink Launch Kenya’s Lowest Money Transfer Fees
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SBM Bank Kenya has partnered with Integrated Payment Services Limited (IPSL), the operator of PesaLink, to introduce the lowest interbank transfer fees in Kenya, leveraging the SBM Mfukoni mobile app and SBM online banking platform.
The initiative, branded #TumaNaMbao, allows SBM Bank customers to send money at no cost for small transactions and at a flat rate for larger transfers.
Under the new fee structure, SBM Bank customers using the Mfukoni app or online banking platform can transfer amounts between KSh 1 and KSh 1,000 at no cost. For amounts ranging from KSh 1,001 to KSh 999,999, a flat fee of KSh 20 will apply. By contrast, some banks charge up to KSh 250 for similar transactions.
The partnership between SBM Bank Kenya and PesaLink is designed to make digital payments more affordable, accessible, and transparent for individuals, microbusinesses, SMEs, and corporates. The move comes as part of SBM’s push to expand its digital-first banking model and encourage wider financial inclusion.
Aijaz Shalla, Chief Operating Officer at SBM Bank Kenya, said the partnership with PesaLink will make money transfers in Kenya more affordable for both retail customers and businesses, while still providing the convenience, safety, and security of the PesaLink platform.
The collaboration leverages PesaLink’s real-time, interoperable payment network, which allows transfers of up to KSh 999,999 between bank accounts, mobile money platforms, SACCOs, and fintech wallets.
Pesalink, with over 6 million registered accounts, connects 37 banks, one mobile network operator, and nine fintechs, processing transactions worth over KSh 1.1 trillion in 2024 alone. The average ticket size was KSh 135,236 across 8.2 million instant transfers.
The initiative is currently running as a pilot program, allowing SBM Bank Kenya and PesaLink to test customer demand, price sensitivity, and usage behavior. If successful, it could lead to a broader industry shift, encouraging other banks in the PesaLink network to adopt low-cost models.
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Kenn Lisudza, Chief Product Officer at IPSL, said the pilot initiative is a model for what customer-centered innovation can look like in Kenya’s digital payments landscape, adding that the partnership with SBM Bank reflects an industry movement toward standardized and transparent pricing.
The SBM Mfukoni app and online banking platform will enable customers to make quick and secure PesaLink transfers via Mfukoni through the following steps:
- Log in to the SBM Mfukoni app or online banking platform.
- Select “PesaLink” from the transaction menu.
- Choose whether to send money to a bank account or phone number.
- Enter the recipient’s details.
- Confirm the transaction using a one-time password (OTP).
- Both the sender and recipient receive instant SMS confirmations.
The Mfukoni app, available on Android and iOS, also enables users to self-register, access online banking, transfer funds, pay bills, top up airtime, and manage accounts. Most services are free.
Meanwhile, the SBM online banking platform offers 24/7 access via internet-connected devices, with added features such as bulk payment tools for businesses and diaspora customers needing to send money home.
This partnership arrives amid strong financial results for SBM Bank Kenya. In the first half of 2025, the bank posted a profit before tax of KSh 202 million, reversing a KSh 943 million loss in H1 2024. Customer deposits grew 37% to KSh 76.2 billion, and total assets rose to KSh 105.7 billion.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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