New Fintech Partnership to Cut Costs, Simplify Payments for Kenyan SMEs

Nairobi, Kenya — September 26, 2025 (EAT).

In a strategic move aimed at empowering small and medium-sized enterprises (SMEs), PesaLink and TendePay have signed a partnership that will integrate real-time interbank payment rails with advanced spend management tools. The collaboration promises faster, cheaper, and more transparent financial operations for Kenya’s SMEs. 

The Latest

• Under the deal, SMEs will be able to send bulk or single payments of up to KES 999,999 instantly, 24/7, across banks using PesaLink’s payment infrastructure. 

• TendePay will layer spend control features such as approval workflows, user limits, and real-time visibility into cash flows and expenses. 

• One of the headline benefits: transaction tariffs for some bank customers will be cut by nearly 50%, making digital payments more affordable for small businesses. 

• The partnership combines PesaLink’s reach across over 80 banks, Saccos, telcos, and fintechs with TendePay’s evolving platform that began as petty-cash management. 

Why It Matters

• Cost reduction is a major barrier for many SMEs shifting from cash-based to digital operations. By lowering transaction fees, the partnership lowers that barrier.

• Efficiency gains: One unified platform for payables, receivables, payroll, and vendor payments cuts down reconciliation time and manual errors.

• Interoperability: Linking spend tools with the payments backbone enhances seamlessness—an important trait in Kenya’s fragmented financial ecosystem.

• SME inclusion: Many small businesses, including in sectors like transport, hospitality, education, and logistics, will benefit from better access to financial tools.

Challenges & Risks

• Security & fraud: As digital transactions increase, so do risks. The partners will need to invest heavily in fraud detection, compliance, and cybersecurity. 

• Onboarding & adoption: There may be resistance or friction among SMEs unfamiliar with digital systems or lacking robust banking relationships.

• Regulatory environment: Oversight from bodies like the Central Bank of Kenya and data privacy regulation will influence how smoothly this integration proceeds.

• System stability: High transaction volumes and real-time demands require resilient infrastructure and contingency planning.

What to Watch

• Rollout timeline: When the full features become available to all tiers of SMEs, especially in rural or underbanked areas.

• Adoption metrics: How many SMEs migrate from cash or mobile money to this unified capability.

• Pricing structure changes: Whether further cost reductions or tiered models are offered.

• Competitor response: Whether other fintechs or banks launch counter offers or partner themselves to similar platforms.