SBM Bank Kenya has introduced the lowest money transfer fees in the country following a new agreement with Integrated Payment Services Limited (IPSL), the operator of Pesalink.

Under the deal, SBM Bank will now enable customers to transfer money for as little as Sh20, a move likely to shake up the digital payments landscape.

Clients transacting via the SBM Mfukoni app or the bank’s online portal can now send between Sh1 and Sh1,000 at no charge, and between Sh1,001 and Sh999,999 at a flat rate of Sh20.

The initiative positions SBM Bank as the most cost-effective option among financial institutions offering interbank transfers through Pesalink.

The newly launched pricing scheme is being rolled out as a pilot to test customer appetite, transaction behaviours, and pricing responsiveness.

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Insights gathered during the campaign will inform a broader rollout, potentially shaping the future cost structure of interbank money transfers across Kenya’s financial sector.

Pesalink, which operates 24 hours a day including weekends and public holidays, has become a key payment channel for both individuals and enterprises.

In 2024 alone, the platform processed over Sh1.1 trillion in transactions, averaging Sh135,236 per transaction, across 8.2 million instant payments—figures that reinforce its growing adoption and reliability.

This development coincides with SBM Bank’s financial rebound, having posted a profit before tax of Sh202 million for the six months ending June 2025.

This marks a significant turnaround from a Sh934 million loss recorded in the same period the previous year.

The bank’s total assets also surged to Sh105.7 billion, up from Sh92.6 billion, while customer deposits jumped 37 per cent to Sh76.2 billion, bolstered by stronger client engagement and portfolio diversification.

While announcing the partnership, SBM Bank Kenya’s Chief Operating Officer, Aijaz Shalla, explained the rationale behind the collaboration:

“We are pleased to be announcing this partnership with Pesalink which will make money transfer in Kenya more affordable for both retail customers and businesses, whilst still benefiting from the convenience, safety, and security offered by the Pesalink platform," Shalla stated.

"This partnership aligns with our revitalised strategy and vision to become Kenya’s preferred payments bank which is digital-first and customer-centric.”

Sharing the vision from IPSL’s side, Chief Product Officer Kenn Lisudza described the initiative as a blueprint for broader industry reform:

“This pilot initiative is a model for what customer-centred innovation can look like in Kenya’s digital payments landscape," Lisudza stated.

"Our partnership with SBM Bank reflects a broader industry movement toward standardised and transparent pricing, with the goal of scaling similar models that deliver enhanced value and simplified payments across our wider network of banking partners.”

As customers increasingly shift to fast, accessible, and secure digital platforms, the SBM-IPSL partnership could influence pricing dynamics across the banking sector, ultimately benefiting millions of users seeking affordable real-time financial services.