SBM Bank, Pesalink Partner to Slash Mobile Money Transfer Fees: “Send KSh 1k for Free”
- SBM Bank and Pesalink announced a partnership aimed at offering reduced money transfer fees from bank to mobile
- Customers transferring up to KES 1,000 will pay zero fee, while larger transfers up to KSh 999,999 will cost a flat KSh 20
- SBM Bank Chief Operating Officer Aijaz Shalla said the partnership aims to make bank-to-mobile money transfers more affordable
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SBM Bank Kenya and Integrated Payment Services Limited (IPSL), the operator of Pesalink, have announced a strategic partnership aimed at significantly reducing the cost of money transfers between banks and mobile phones.
Source: UGC
Through this collaboration, SBM Bank can offer some of the most competitive remittance fees in the market and enhance its payment solutions for customers.
What are new money transfer fees?
Under the new agreement, customers using Pesalink via the Mfukoni app and SBM Bank's online banking platform will receive free transfers for amounts between KSh 1 and KSh 1,000.
For transfers between KSh 1,001 and KSh 999,999, a flat fee of KSh 20 will be charged, which is the lowest fee for such transactions.
The initiative serves as a pilot programme to assess customer demand, price sensitivity and usage behaviour, with the possibility of extending similar pricing models to the wider network of Pesalink banking partners in the future.
Pesalink is renowned for being a 24/7, instant, and affordable payment channel, operating even outside traditional banking hours and on public holidays.
It has become Kenya’s leading interbank transfer solution for single transfers under KES 1 million.
In 2024, Pesalink facilitated over KSh 1.1 trillion in transactions, with an average ticket size of KSh 135,236, translating to 8.2 million instant transactions. This highlights its growing importance as a preferred payment platform, particularly for businesses.
The partnership comes as SBM Bank Kenya reports a significant turnaround, posting a KSh 202 million profit before tax for the half year to June 2025, a stark contrast to the KSh 934 million loss in the same period last year.
This performance underscores the effectiveness of the bank’s revitalised strategy. Over the same period, SBM Bank's total assets grew to KSh 105.7 billion from KSh 92.6 billion in the first half of 2024, while customer deposits increased by 37% to KSh 76.2 billion, driven by an expanding customer base.
Source: Getty Images
Aijaz Shalla, Chief Operating Officer at SBM Bank Kenya, emphasised that the partnership's alignment with the bank's vision.
"We are pleased to be announcing this partnership with Pesalink, which will make money transfers in Kenya more affordable for both retail customers and businesses, whilst still benefiting from the convenience, safety, and security offered by the Pesalink platform.
"This partnership aligns with our revitalised strategy and vision to become Kenya’s preferred payments bank, which is digital-first and customer-centric,” said Shalla in a statement seen by TUKO.co.ke.
Kenn Lisudza, Chief Product Officer at IPSL, commented on the broader industry implications, noting that the pilot initiative is a model for what customer-centred innovation can look like in Kenya’s digital payments landscape.
“Our partnership with SBM Bank reflects a broader industry movement toward standardised and transparent pricing, intending to scale similar models that deliver enhanced value and simplified payments across our wider network of banking partners,” said Lisudza.
Source: TUKO.co.ke
