TL;DR: Kenya's interbank transfer ecosystem operates through three main rails: Pesalink for real-time account-to-account transfers (KES 10 to KES 999,999, with bank-set fees generally ranging from zero to KES 200), RTGS for large-value same-day settlements (minimum KES 1 million, flat fee around KES 500 at most banks), and EFT for lower-priority batch transfers (free to KES 100 depending on the bank). M-Pesa remains an alternative for transfers up to KES 250,000. Pesalink, operated 24/7 by Integrated Payment Services Limited under the Kenya Bankers Association, has transformed the cost and speed of moving money between Kenyan bank accounts since its 2017 launch. This guide breaks down every relevant fee at Kenya's major banks.
How Interbank Transfers Work in Kenya
Kenya's interbank payment infrastructure is regulated by the Central Bank of Kenya (CBK) under the National Payments System Act 2011. The CBK operates the core Real Time Gross Settlement (RTGS) system for high-value interbank settlement while private entities manage additional rails. Integrated Payment Services Limited (IPSL), a subsidiary of the Kenya Bankers Association (KBA), operates Pesalink, Kenya's primary real-time retail interbank payment network. When a customer initiates a Pesalink transfer from their KCB account to an Equity Bank account, the transaction travels through IPSL's network, is validated in real time, and the recipient's account is credited within a maximum of 30 seconds. Settlement between the banks for aggregate Pesalink flows occurs through the CBK's RTGS system at defined intervals. This architecture means Pesalink delivers instant credit to the end customer while maintaining orderly interbank settlement in central bank money at the back end. IPSL reports an average annual system uptime of 99.99 percent for Pesalink, making it a dependable infrastructure for daily payment needs across Kenya's 80-plus participating financial institutions.
Pesalink: Kenya's Real-Time Interbank Payment System
Pesalink launched commercially in 2017 as a collaboration between all Kenya Bankers Association member banks. Its defining features are real-time crediting, 24/7/365 availability including weekends and public holidays, and a per-transaction ceiling of KES 999,999. The minimum transfer is KES 10, making it equally suitable for micro-payments and near-maximum-value transfers. Recipients can be identified either by mobile phone number (for customers registered on Pesalink) or by bank account number and sort code (for all account holders regardless of registration). Pesalink is accessible through member bank mobile apps, internet banking portals, and USSD codes. End-user fees for Pesalink are set individually by each member bank rather than by IPSL centrally, which is why charges vary across institutions. The Central Bank of Kenya has encouraged competition on these fees to keep costs affordable, and several banks now offer zero or nominal Pesalink fees for lower-value transfers. The system is ISO 20022 compliant, aligning Kenya's payment infrastructure with global standards for rich payment data and enhanced regulatory reporting.
RTGS: Large-Value Same-Day Settlement
Kenya's RTGS system, operated by the Central Bank of Kenya, processes large-value and time-critical interbank transfers on a gross, real-time basis meaning each transaction settles individually and immediately in central bank money without netting against other transactions. The RTGS minimum threshold at retail level is typically KES 1 million for customer transfers, though banks may apply their own minimums. Most Kenyan commercial banks charge a flat fee of approximately KES 500 per outgoing RTGS transfer regardless of the transfer amount. RTGS transfers initiated during CBK operating hours generally settle within 30 to 60 minutes. Because RTGS processes in central bank money and is individually settled, it carries the lowest possible settlement risk among Kenya's interbank transfer options, making it the preferred method for high-value commercial transactions, land transactions, bulk payroll, and government payments. RTGS does not operate on a 24/7 basis in the same way Pesalink does and is subject to the CBK's daily operating schedule, typically aligned with East African Standard Time business hours.
EFT: Electronic Funds Transfer for Batch Payments
Electronic Funds Transfer (EFT) in Kenya is a batch-based payment system for lower-priority transfers that do not require immediate credit. EFT transactions are collected by the originating bank throughout the day, submitted to the Kenya Electronic Payment and Settlement System (KEPSS) for processing, and typically credit the beneficiary within one to two business days. EFT is well-suited for payroll runs, standing orders, utility payments, and scheduled business disbursements where same-day credit is not essential. Most Kenyan banks charge minimal or zero fees for outgoing EFT transactions initiated through internet or mobile banking channels. EFT does not support weekend or public holiday processing, so transfers initiated on a Friday afternoon may not credit until Monday or the next business day. Despite slower settlement, EFT remains widely used for high-volume, low-urgency bulk disbursements by businesses and government entities.
KCB Bank Pesalink Charges
KCB Bank, Kenya's largest bank by assets, offers Pesalink transfers for amounts between KES 10 and KES 250,000 per day through its mobile and internet banking channels. KCB's Pesalink fee structure follows a tiered model: transfers from KES 10 to KES 1,000 are free of charge; transfers from KES 1,001 to KES 10,000 attract a fee of KES 30; transfers from KES 10,001 to KES 100,000 attract KES 60; and transfers from KES 100,001 to KES 250,000 attract KES 90. RTGS transfers from KCB to other banks attract a flat fee of KES 500. KCB customers can access Pesalink via the KCB mobile app, the USSD code *522#, or internet banking at onlinebanking.kcbgroup.com. On completion, both the sender and recipient receive SMS confirmations, one from KCB and one from Pesalink confirming the transaction. KCB's daily Pesalink limit of KES 250,000 is lower than the system maximum of KES 999,999, so customers needing to transfer larger amounts must use RTGS.
Equity Bank Interbank Transfer Charges
Equity Bank charges zero fee for Pesalink transfers from KES 0 to KES 1,000 and KES 50 for transfers between KES 1,001 and KES 100,000. Transfers above KES 100,001 up to KES 999,000 attract a fee of KES 100. Equity Bank customers must register with Pesalink using their Equitel mobile number to initiate Pesalink transfers through mobile banking. RTGS outward transfers from Equity Bank to other banks attract a flat fee of KES 500. For international cross-border SWIFT transfers, Equity Bank charges KES 1,000 per transaction. Equity's mobile banking is accessible through the Equity Mobile app as well as the Equitel USSD service. The bank also participates in the Pan African Payments and Settlement System (PAPSS), which enables transfers to other African countries in local currencies, removing hard currency dependency for intra-continental payments.
Co-operative Bank Transfer Fees
Co-operative Bank (Co-op Bank) allows Pesalink transfers of between KES 10 and KES 200,000 per day. Its tiered fee structure typically charges KES 50 for transfers up to KES 10,000 and KES 100 for transfers between KES 10,001 and KES 200,000. Co-op Bank's MCo-opCash mobile wallet and internet banking platforms provide access to Pesalink. RTGS transfers attract a fee of approximately KES 500 per transaction. Co-op Bank also offers EFT as a lower-cost option for business customers making batch payroll and supplier disbursements. Its MCo-opCash platform integrates Pesalink with mobile money functionality, allowing customers to manage both bank account transfers and mobile wallet transactions through a single application.
Family Bank Pesalink Charges
Family Bank is a Pesalink member allowing transfers from KES 10 to its daily limit. Family Bank's Pesalink fee schedule is structured in tiers consistent with industry norms, with zero charge for minimal amounts and fees escalating up to KES 200 for larger transfers approaching the KES 999,999 maximum. Customers access Family Bank's Pesalink service through the PesaPap mobile banking app. Family Bank's internet banking portal also supports Pesalink initiation for account holders enrolled in the online banking service. For RTGS transfers, Family Bank charges approximately KES 500, consistent with the market standard at major Kenyan commercial banks.
Guaranty Trust Bank Kenya Pesalink Fees
Guaranty Trust Bank (GTBank) Kenya has published a detailed Pesalink fee schedule. Transfers from KES 501 to KES 10,000 attract KES 50; from KES 10,001 to KES 50,000 attract KES 100; from KES 50,001 to KES 100,000 attract KES 120; from KES 100,001 to KES 200,000 attract KES 160; from KES 200,001 to KES 500,000 attract KES 180; and from KES 500,001 to KES 999,999 attract KES 200. Transfers of KES 500 and below are free. GTBank Kenya charges KES 500 for outward RTGS transfers to other banks. Airtime purchases through the platform cost KES 10 and bill payments attract KES 50.
Bank to M-Pesa Transfer Charges
Transferring money from a Kenyan bank account directly to an M-Pesa wallet is a separate service from Pesalink and operates through Safaricom's M-Pesa integration with member banks. Each bank sets its own bank-to-M-Pesa transfer charges, and these typically vary by transfer amount. Common fee bands run from zero for very small amounts to KES 100 or more for transfers approaching the per-transaction M-Pesa receive limit. Equity Bank charges follow the bank-to-mobile wallet schedule published in its tariff guide, while KCB charges are available on its tariff page. The maximum amount that can be sent from Equitel to M-Pesa per transaction is KES 35,000. Transfers from bank accounts to M-Pesa are generally processed instantly and are useful when the recipient has registered for M-Pesa but does not hold a Pesalink-registered bank account.
How to Minimise Transfer Costs in Kenya
Using Pesalink for transfers below KES 999,999 is the most cost-effective interbank option for amounts that do not require RTGS settlement finality. Many banks have reduced or eliminated Pesalink fees for lower transfer bands, so checking your bank's current tariff guide before initiating a transfer is worthwhile. For transfers requiring same-day certainty and above the Pesalink limit, RTGS at KES 500 is the appropriate tool. Avoiding branch-initiated transfers in favor of mobile app or internet banking-initiated transfers typically attracts lower fees at most Kenyan banks. EFT remains appropriate for payroll and recurring batch disbursements where one to two day settlement is acceptable and cost minimisation for volume is a priority.
Frequently Asked Questions
What is Pesalink in Kenya?
Pesalink is a real-time, 24/7 interbank account-to-account transfer system operated by Integrated Payment Services Limited (IPSL), a subsidiary of the Kenya Bankers Association. Launched in 2017, it connects over 80 financial institutions and allows Kenyans to send between KES 10 and KES 999,999 between bank accounts instantly using a mobile number or account number as recipient identifiers. Fees are set by individual banks and typically range from zero to KES 200 depending on the transfer amount and the specific bank.
How long does a bank-to-bank transfer take in Kenya?
Pesalink transfers credit within a maximum of 30 seconds. RTGS transfers typically settle within 30 to 60 minutes during CBK operating hours. EFT transfers take one to two business days. Bank-to-M-Pesa transfers are generally instant. Transfer speed depends on the chosen rail and the time of initiation, with RTGS subject to daily CBK operating windows while Pesalink operates around the clock including weekends and public holidays.
What is the maximum amount I can transfer via Pesalink?
The Pesalink system maximum per transaction is KES 999,999. However, individual member banks impose their own daily limits that may be lower than the system maximum. KCB, for example, limits Pesalink transfers to KES 250,000 per day while Equity Bank's limit is KES 999,000. Always check your specific bank's current daily Pesalink limit before initiating a large transfer, as amounts above the daily limit must be processed as RTGS transfers.
What is the cheapest way to transfer money between banks in Kenya?
For transfers up to KES 999,999, Pesalink initiated through mobile banking or internet banking is typically the cheapest option. Several major Kenyan banks charge zero Pesalink fees for transfers up to KES 1,000 and modest fees above that threshold. EFT is also low cost for batch business payments where same-day credit is not required. M-Pesa peer-to-peer transfers offer competitive charges for smaller amounts and are widely accessible even without a bank account.
Do I need to register for Pesalink to receive money?
No. If a sender initiates a Pesalink transfer using the recipient's bank account number rather than their mobile number, the recipient does not need to be registered on Pesalink to receive funds. Registration is only required if the sender wants to use the recipient's phone number as the transfer identifier. Standard Chartered Bank Kenya confirms that recipients can receive Pesalink funds into their account using the 13-digit account number without prior Pesalink registration.
Sources
Standard Chartered Kenya Pesalink FAQ: https://www.sc.com/ke/pesalink/
KCB Group Pesalink: https://ke.kcbgroup.com/ways-of-banking/pesa-link
Equity Group Holdings Tariff Guide: https://equitygroupholdings.com
Lightspark Instant Payments Kenya Report: https://www.lightspark.com/knowledge/instant-payments-kenya
GTBank Kenya Tariff Guide: https://gtbank-kenya.files.svdcdn.com
Central Bank of Kenya National Payments System Act: https://www.centralbank.go.ke
