Users of PesaLink, a popular real-time money transfer service in Kenya, will now pay slightly more to send money following the introduction of a 16% Value Added Tax (VAT) on transaction fees.
Integrated Payment Services Limited (IPSL), the company that operates PesaLink, has implemented the new tax on fees for outgoing transactions, resulting in additional charges of KES 0.80, KES 4.00, or KES 5.60 per transfer, depending on the amount being sent. The revised charges took effect on June 16, 2025.
In a notice to customers, PesaLink explained:
“Dear Customer, Integrated Payment Services Limited (IPSL) has introduced a 16% VAT charge on their fees levied on each PesaLink transaction. Consequently, there will be an additional fee levied on outgoing PesaLink transactions… Receiving money via PesaLink into your MEB account remains free.”
The change affects only outgoing payments. Receiving funds through PesaLink continues to be free of charge.
The fee adjustment comes as financial service providers across Kenya adjust to comply with updated tax regulations.
