HomeBUSINESSKCB Introduces Flat KSh 20 Pesalink Fee, Free Transfers Below KSh 1,000

KCB Introduces Flat KSh 20 Pesalink Fee, Free Transfers Below KSh 1,000

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Kenyans using KCB Bank can now enjoy cheaper and more predictable bank-to-bank transfers after the bank introduced a flat KSh 20 fee on Pesalink transactions above KSh 1,000. Even better, transfers below KSh 1,000 will now be completely free.

The new pricing applies to transactions made through KCB mobile banking, internet banking, and other digital banking channels. The move is part of the banking industry’s “Tuma Direct na 20/-” campaign aimed at encouraging affordable instant bank transfers across Kenya.

What Has Changed?

Previously, Pesalink charges varied depending on the amount being transferred. Customers sending larger amounts often paid significantly higher fees.

Under the new structure:

  • Transfers below KSh 1,000 are free
  • Transfers between KSh 1,001 and KSh 999,999 now attract a flat KSh 20 fee

This means customers no longer need to worry about complicated tiered charges when sending money between banks.

Why This Matters to Kenyans

The revised Pesalink pricing is expected to benefit:

1. Small Businesses and SMEs

Small businesses that regularly pay suppliers, employees, or partners through bank transfers will now enjoy lower transaction costs. This could help reduce operational expenses, especially for businesses handling multiple daily payments.

2. Everyday Mobile Banking Users

For ordinary Kenyans, free transfers below KSh 1,000 make it easier to send small amounts without worrying about charges. This is especially useful for quick family transfers, bill sharing, and small payments.

3. Increased Adoption of Bank Transfers

The simplified pricing could encourage more people to shift from expensive or uncertain transfer methods to direct bank-to-bank payments through Pesalink.

KCB’s Digital Banking Push

According to KCB Managing Director Annastacia Kimtai, the move supports the bank’s strategy of improving access to affordable financial services and accelerating digital banking adoption in Kenya.

KCB says over 99% of its transactions are now processed through digital channels, showing how rapidly customers are embracing online and mobile banking services.

What is Pesalink?

Pesalink is a real-time interbank money transfer platform operated by IPSL (Integrated Payment Services Limited). It allows customers to send money directly from one bank account to another instantly, even across different banks in Kenya.

Unlike mobile money services, Pesalink transfers move funds directly between bank accounts, making it attractive for businesses and customers handling larger transactions.

Kenyan Banks Moving Toward Cheaper Transfers

KCB joins several Kenyan banks that have recently lowered Pesalink fees in an effort to promote affordable digital payments. Industry players believe simpler pricing models will accelerate financial inclusion and strengthen Kenya’s position as a leader in digital banking innovation.

For customers, the biggest win is transparency: one predictable fee regardless of transaction size.

Final Thoughts

KCB’s decision to introduce a flat KSh 20 Pesalink fee could significantly change how Kenyans move money between bank accounts. With free transfers below KSh 1,000 and affordable charges for larger transactions, bank-to-bank payments are becoming more practical for both individuals and businesses.

As digital banking continues to grow in Kenya, lower transfer costs could push even more customers toward formal banking channels and reduce dependence on expensive transaction methods.

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