SBM Bank Kenya announced that PesaLink transfers of less than KES 1 million will be processed without any fee.

The move addresses the economic barrier that previously existed between customers and their own funds, even when the recipient uses a different bank.

For traders who move money several times a day, mothers sending school fees, and small businesses settling multiple suppliers, the fee removal represents a material change in how banking can be used.

By eliminating the charge, SBM hopes to keep money inside the regulated system, helping users build transaction histories and credit footprints that support future access to loans and other products.

Why fee removal matters in Kenya

Remittance and transfer fees were set when moving money required manual reconciliation and costly correspondent banking relationships, but the marginal cost of digital transfers is now close to negligible in many markets.

A flat fee on a modest transfer can represent a significant percentage of the amount sent, discouraging informal traders, gig workers and households from using formal banking channels.

When fees feel excessive, customers often turn to cash, informal networks or rival platforms that charge less, reducing banks’ deposit bases and limiting the data banks can collect on customer behaviour.

Fintech challengers have shown that transparent, low‑cost transfers attract and retain users, making price a core component of the payment experience rather than a hidden back‑office cost.