New fintech partnership to cut costs, simplify payments for Kenyan SMEs

Two fintech innovators, PesaLink and Tende Pay, have signed a new partnership that seeks to transform the small and medium-sized enterprises (SMEs) in Kenya.

The collaboration will combine PesaLink’s real-time interbank payment infrastructure with Tende Pay’s spend management solutions, giving SMEs access to affordable, convenient, and data-driven financial tools. 

Tende Pay CEO Abel Masai said the company’s platform is designed to simplify and automate financial operations for enterprises that handle frequent, high-value transactions.

 “We are introducing features such as instant bank transfers of up to Sh1 million, available 24/7, as well as payment approval workflows, user limits to prevent misuse, and real-time visibility into cash flows and expenses. This empowers business owners to exercise greater control over their finances and make data-driven decisions for growth,” he said.

Tende Pay is already gaining traction among contractors, schools, hospitals, logistics firms, and SMEs in the matatu sector.

Masai added that reducing costs is central to their strategy, with transaction tariffs cut by nearly 50 per cent for some banks. By lowering barriers to adoption, the partnership is expected to encourage more SMEs to embrace digitisation, not just for payments, but also for reconciliation, record keeping, and analytics.

PesaLink CEO Gituku Kirika highlighted the broader momentum within Kenya’s fintech ecosystem, noting that non-bank participants such as saccos, microfinance institutions, telcos, and fintech startups now outnumber banks within its network.

“The ecosystem is increasingly diverse, with fintechs addressing everything from payments to wealth management and education. Every week, new players approach us to join. This reflects the vibrancy and entrepreneurial spirit driving Kenya’s fintech growth,” he said.

Kirika emphasised that interoperability will define the sector’s future, enabling banks, fintechs, and telcos to transact seamlessly. PesaLink is licensed as a switch, providing secure infrastructure for other providers to operate, much like the global card payment model.

However, he cautioned that as digital adoption grows, so too do risks around cybersecurity and fraud, calling for continuous investment in data protection and advanced tools such as artificial intelligence.

Analysts say the PesaLink–Tende Pay partnership signals a new phase in Kenya’s digital finance journey, shifting focus from peer-to-peer transfers to empowering SMEs with tools that enhance efficiency, accountability, and growth.

Studies indicate that 91 percent of Kenyan SMEs now use some form of digital payments, with more than two-thirds planning further investments. Yet cost, fraud concerns, and limited digital literacy remain barriers to full adoption.

By scaling its solutions across borders, the company hopes to replicate its impact in markets where SMEs face similar challenges.

With SMEs recognised as the backbone of Kenya’s economy, fintech leaders believe the sector’s future lies in building affordable, interoperable, and secure platforms tailored to their needs.