Digital cash transfer firm Upesi targets Sh1b in outbound transfers

Audio By Vocalize

Upesi, a Kenyan outbound money transfer service, is targeting more than Sh1 billion in transactions over four months through a zero-fee campaign covering eight international corridors.

Upesi expects to process an average of about Sh276 million per month, with China projected to account for about Sh150 million monthly, driven by growing business activity between Kenya and the Asian market, particularly payments by businesses sourcing goods and services from China.

The campaign, which started on September 1 and runs until the end of 2026, covers outbound transfers from Kenya to eight international corridors, including China, Uganda, Rwanda, Tanzania, Ghana, the Philippines, the United Arab Emirates (UAE) and Nigeria.

“Cross-border payments are becoming increasingly important for businesses and individuals as trade and other economic links between Kenya and international markets grow. We want to make these transfers more accessible and affordable by removing fees on selected corridors,” said Head of Treasury at Upesi Money Transfer John Gitau.

The campaign targets small and medium-sized enterprises, importers, students, investors and families making payments abroad.

With transfer fees waived, Kenyans sending money abroad can enjoy faster, more affordable international transfers, particularly during the festive season when payments for family support, education and business needs tend to increase.

The move comes as digital providers expand their presence in Kenya’s outbound payments market, intensifying competition with commercial banks and mobile money operators on transfer costs, speed and convenience.

Data from the 2025 Remittances Household Survey by the Central Bank of Kenya shows that mobile money operators and commercial banks accounted for 87.8 per cent of cash remittance outflows, with mobile money handling 47 per cent and commercial banks 40.8 per cent. Fintech platforms accounted for 9.6 per cent, while Money Transfer Operators handled 1.2 per cent.

Cost remains a key concern for customers sending money abroad, with 73.8 per cent identifying lower transfer costs as the most important improvement needed.

Kenya recorded Sh40.5 billion in outbound remittance outflows between June 2024 and May 2025, of which Sh36.3 billion was in cash and Sh4.3 billion in kind.

The East African Community accounted for Sh7.3 billion, or 17.9 per cent of total outbound remittances, with Uganda receiving Sh5.25 billion, Tanzania Sh1.37 billion and Rwanda Sh170.1 million.

Education was a major component of outbound remittances, with students and pupils studying abroad receiving Sh27.7 billion, equivalent to 68.4 per cent of total outbound remittance outflows.