Tanzanian fintech NALA has expanded into Kenya through a partnership with Equity Bank and payment utility Pesalink, targeting the country’s fast-growing remittance inflows while sidestepping the lengthy licensing process required of foreign entrants.
The deal allows NALA, which provides cross-border payment services for consumers and businesses, to route diaspora transfers through Pesalink’s instant payment network and settle with Equity Bank. Recipients in Kenya will receive funds in real time in mobile wallets or bank accounts.
Kenya’s remittance inflows rose 18% in 2024 to a record $4.94 billion, according to the Central Bank of Kenya, making them the country’s second-largest source of foreign exchange after agricultural exports. The bulk of transfers originates from the US, UK, and Europe — the same markets where NALA has built its user base.
“Removing friction from cross-border payments drives inclusion and reliability for millions of Kenyans,” said Kenn Lisudza, Integrated Payments Service Limited (IPLS) product officer. “Through this partnership, Equity Bank’s enabling role, Pesalink’s trusted infrastructure, and NALA’s global reach will deliver faster, cheaper remittances for households and businesses.”
By partnering with Pesalink, owned by the Kenya Bankers Association (KBA) through IPLS, and Equity, NALA avoids the protracted licensing procedures overseen by CBK. This approach mirrors strategies used by other cross-border payment firms like WorldRemit, which have found partnerships a faster route to market than applying for a standalone licence.
Equity said the partnership is part of its Africa Recovery and Resilience Plan. “This is more than a technical integration, it’s a strategic move to drive inclusive economic growth,” said Samuel Ireri, the bank’s group head of international banking and payments.
Founded in 2017 by Benjamin Fernandes, the move marks NALA’s most ambitious push yet into East Africa’s most developed financial market. Kenya is dominated by entrenched players, including Safaricom’s M-PESA, international remittance firms such as Western Union and MoneyGram, and banks with established diaspora channels.
“Every year, billions are lost to cross-border payment fees worldwide,” said NALA’s chief operating officer, Nicolas Eddy. “Our choice of infrastructure partners is essential to reducing fees and making cross-border payments more affordable for everyone.”NALA’s success in Kenya will hinge on how well it can compete on cost and speed in a market dominated by established players like M-PESA and big banks. However, the partnership with Equity Bank and Pesalink gives the fintech an entry point into one of Africa’s most competitive payment corridors.
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