African Banking Corporation (ABC Bank) has revised its PesaLink transfer charges so that all transactions below KSh 1,000 are now free, while any amount from KSh 1,000 up to KSh 999,999 attracts a flat fee of KSh 20.
The change forms part of the industry-wide “Tuma Direct na KSh20” campaign coordinated by Integrated Payment Services Limited (IPSL), the company that operates the PesaLink network on behalf of Kenyan banks. The campaign is designed to standardise and lower the cost of real-time bank-to-bank transfers across participating institutions.
Revised ABC Bank PesaLink Rates
| Transaction Amount | Charge |
|---|---|
| Below KSh 1,000 | Free (KSh 0) |
| KSh 1,000 to KSh 999,999 | Flat KSh 20 |
Terms and conditions apply. Confirm current rates in the ABConnect app.
Customers can access the new rates through the ABConnect Mobile Banking app, Internet Banking, or at any of ABC Bank’s 11 branches nationwide. The platform supports real-time transfers directly from one bank account to another without routing the money through a mobile money wallet.
ABC Bank Managing Director Apollo Njoroge said the reduction is meant to make everyday bank-to-bank payments more affordable. “By reducing our PesaLink charges, we are making real-time bank-to-bank transfers more affordable and convenient for our customers. We are also pleased to support the industry-wide ‘Tuma Direct na KSh20’ campaign, which is making it easier for Kenyans to move money directly between bank accounts at a simple and affordable cost,” he said in the bank’s official statement.
How the New Rates Compare with Previous Charges
Before the revision, ABC Bank and most other lenders used a tiered fee structure on PesaLink. Under the old model, charges rose with the amount transferred and could reach well above KSh 100 for larger sums. A transfer of KSh 50,000, for example, previously attracted a significantly higher fee than the new flat KSh 20.
The free band for amounts under KSh 1,000 is particularly useful for everyday small payments such as utility top-ups, small business supplies, or family transfers. For larger amounts, the flat KSh 20 removes the uncertainty that came with the old sliding scale.
Industry Context: More Banks on the Same Pricing
ABC Bank is joining a growing list of institutions that have adopted the simplified PesaLink pricing. By mid-2026, more than 20 banks and microfinance institutions had publicly moved to the free-below-KSh-1,000 and flat-KSh-20 structure. Major names including KCB, Absa, Stanbic, DTB, Prime Bank and others had already implemented similar rates earlier in the year under the same IPSL-coordinated campaign.
The shift is part of a broader effort by the banking industry to compete more effectively with mobile money for person-to-person and person-to-business payments. For medium- and high-value transfers, the flat KSh 20 is substantially lower than typical mobile money send fees, which continue to rise with the amount.
What Customers Should Check
The new rates apply only to PesaLink transfers initiated from an ABC Bank account to another participating bank. Customers should confirm the exact charge shown on the confirmation screen inside ABConnect or Internet Banking before approving a transfer, as terms and conditions apply and other banks may still use different pricing if they have not joined the campaign.
Daily and monthly transaction limits on PesaLink remain governed by the bank’s existing risk and regulatory controls. The pricing change does not alter those limits.
ABC Bank’s official announcement on its website, posted on 30 September 2026, and subsequent coverage confirmed the free threshold below KSh 1,000 and the KSh 20 flat rate up to KSh 999,999. The bank has also been promoting the rates on its social channels under the “Tuma na Mbao” messaging.
Read also:Absa Cuts PesaLink Fees: Transfers Below Ksh 1,000 Now Free
For customers who regularly move money between bank accounts, the revision removes a long-standing cost barrier on smaller transfers and simplifies pricing on larger ones. Whether the lower rates will shift meaningful volume away from mobile money wallets will depend on how widely other banks continue to adopt the same structure and how convenient the bank-to-bank experience remains for everyday use.
Sources:
ABC Bank – ABC Bank joins ‘Tuma Direct na KSh20’ campaign (30 September 2026)
TechArena – ABC Bank Cuts PesaLink Transfer Fees to KSh20 (12 October 2026)
IPSL / PesaLink industry campaign materials as referenced in bank announcements.
Rates and terms can change. Always confirm the live charge in the ABConnect app or with ABC Bank before making a transfer.