Kenya’s digital payments industry could see a major shift if a proposal by Safaricom and the Kenya Bankers Association (KBA) is adopted.

The two entities suggest making Pesalink the country's primary fast payment system (FPS) to streamline digital transactions across banks, mobile money platforms, and fintech operators. Safaricom and KBA submitted a joint proposal advocating for Pesalink’s infrastructure rather than creating a new system or managing multiple private payment switches. They argue that Pesalink, operated by the KBA-owned Integrated Payment Services Limited (IPSL), already processes $8.5 billion (Ksh 1.1 trillion) annually and is well-positioned to enhance interoperability. If adopted, this plan would unify Kenya’s digital payment networks, which currently function through separate agreements between banks, mobile money providers, and fintechs. This fragmentation leads to inconsistent transaction fees and service quality, a challenge the proposal aims to resolve. Developing an entirely new FPS could cost at least $200 million (Ksh 25.9 billion) and take up to four years. Enhancing Pesalink offers a more cost-effective alternative with a quicker rollout. The proposal calls for system improvements to support at least 6,000 transactions per second while strengthening risk management and security. Another approach under consideration is the Colombian model, which involves multiple private switches regulated by the Central Bank of Kenya (CBK). While this may offer flexibility, Safaricom and KBA warn it could complicate oversight and lead to service inconsistencies. Ali Hussein Kassim, chairman of the Association of FinTechs in Kenya, noted that a unified system would simplify transactions for businesses and the public while aligning with CBK’s vision for a seamless digital payment ecosystem. If the proposal gains approval, Pesalink would undergo extensive upgrades to support high-volume transactions and enable cross-platform payments. This would allow seamless transfers between banks, mobile money providers, and fintech platforms, strengthening Kenya’s digital economy.