Good news for bank customers. Sending money between banks in Kenya is now much cheaper after 19 banks adopted new lower Pesalink charges.

If your bank is part of the programme, here’s what you’ll pay:

 KSh 1 to KSh 1,000: FREE
 KSh 1,001 to KSh 999,999: Flat fee of KSh 20

Previously, customers could pay as much as KSh 250 depending on the amount they were sending. 

Why are banks doing this?

Banks are trying to encourage more people to use Pesalink for everyday transfers by making it faster, simpler, and more affordable. The move also helps them compete with mobile money services for person to person payments. (Business Daily)

Which banks have joined?

The number of participating banks has grown to 19, with major lenders such as KCB, Absa, Stanbic, Diamond Trust Bank (DTB), and Prime Bank among those offering the new pricing. 

What this means for you

If you regularly send money from one bank account to another, you could save hundreds of shillings every month. For example, a transfer of KSh 500,000 that previously cost up to KSh 240 at some banks now costs just KSh 20. 

Before making a transfer, check whether your bank is among the participating institutions so you can enjoy the reduced rates.