Kenyan businesses can now process instant payments up to KES 999,999 around the clock following a new partnership between spend management platform TendePay and payment network Pesalink.
The integration connects TendePay’s business payment tools with Pesalink’s infrastructure that spans over 80 banks, SACCOs, telecommunications companies, and fintech providers across Kenya.
This means companies can handle everything from payroll and supplier payments to utility bills and customer collections through a single platform, with transactions settling instantly 24/7.
TendePay has expanded well beyond its origins as a petty cash management tool. It now handles the full spectrum of business payments, targeting organizations that deal with frequent, high-value transactions.
The company specifically serves microfinance institutions, manufacturers, distributors, retailers, contractors, logistics firms, hotels and restaurants, and professional accounting firms.
These businesses often struggle with payment delays, manual reconciliation, and the complexity of managing multiple payment channels.
“This partnership reflects our evolution into a full spend management platform,” said Abel Masai, TendePay’s CEO. “With Pesalink’s trusted infrastructure, we are giving businesses a reliable, secure, and affordable tool to manage every payment, whether large or small, at any time.”
How TendePay Will Address Real-World Challenges for SMEs
Following the announcement, Techweez spoke to TendePay about how the system would work for Kenya’s diverse business landscape.
When asked about bulk payment reversals, a critical concern for businesses processing multiple transactions, TendePay explained they have established a direct support channel with Pesalink’s team.
“Reversals are much easier and faster to process,” a company representative said. “We have a direct support channel with their team, which enables us to initiate and follow up on reversals promptly, minimizing delays and ensuring timely resolution.”
A second question challenged the platform’s accessibility for informal businesses. While the solution targets SMEs, we pointed out that many small traders like kiosk owners, boda boda riders, and market vendors operate primarily through mobile money rather than bank accounts.
TendePay addressed this directly, saying, “Most small traders still rely heavily on mobile money. That’s why with this collaboration, we’ve made sure they don’t need a bank account to benefit.”
The platform allows businesses to receive payments from both bank accounts (via Pesalink) and M-Pesa, while also enabling disbursements to both channels.
“This flexibility ensures that even informal businesses without bank accounts can participate seamlessly while still enjoying the speed and affordability of instant transfers.”
We pressed further on whether costs, onboarding, and compliance requirements would lock out the majority of Kenya’s 7.4 million SMEs, which is a valid concern given how traditional banking services often price out smaller businesses.
“Speed, convenience, and affordability are the core of this partnership. We’ve significantly reduced our bank transfer tariffs to make it easier for businesses to digitize without straining their margins,” TendePay responded.
They emphasized their streamlined approach, stating, “Our simple onboarding process means you can get started quickly and easily.”
Impact on the Market
Ken Lisudza, Chief Commercial Officer at IPSL (which operates Pesalink), also asserted the collaborative approach.
“Pesalink was built on the principle of interoperability to simplify payments by delivering instant and affordable transfers across Kenya’s financial ecosystem. By partnering with TendePay, we are extending these benefits to businesses of every size.”
The partnership addresses two critical pain points: payment speed and reconciliation complexity. Businesses can now send single payments or bulk transfers instantly, while incoming payments from any Kenyan bank are automatically reconciled, reducing manual administrative work.
According to FSD Kenya 2024 data, Kenya’s SMEs employ nearly 14.9 million people and contribute roughly 40% of the country’s GDP, yet remain underserved by traditional financial services.
