A Nigerian company has approached State House to garner support for an ambitious proposal to construct a new payments system for the Central Bank of Kenya (CBK), a project estimated to cost Kenyan taxpayers Sh26 billion.
The initiative aims to overhaul the country’s financial infrastructure, but it has sparked resistance from local banks, who argue that the existing PesaLink platform should be upgraded instead.
The unidentified Nigerian firm has pitched its plan as a modern solution to streamline transactions and enhance efficiency in Kenya’s banking sector.
Sources indicate that the company has been lobbying senior government officials, emphasizing the need for a fresh system to replace what it describes as outdated technology.
However, the proposal has raised eyebrows due to its hefty price tag and the decision to seek political backing rather than engaging directly with financial stakeholders.
Kenyan banks, in a unified stance, have rejected the idea of a new system, calling it unnecessary and costly.
Industry leaders argue that PesaLink, the current interbank payment platform launched in 2017, remains viable and could be improved with targeted upgrades at a fraction of the Sh26 billion proposed cost.
“We don’t need to reinvent the wheel,” said a senior banking official, speaking on condition of anonymity. “PesaLink has proven its worth, and any enhancements should build on that foundation rather than burdening taxpayers with an expensive new system.”
The debate comes at a time when Kenya’s financial sector is under pressure to balance innovation with fiscal responsibility.
Critics of the Nigerian firm’s plan have questioned why a foreign entity is spearheading such a critical national project, urging the CBK and Treasury to prioritize local expertise and solutions.
Proponents, however, suggest that the new system could position Kenya as a regional leader in digital payments.
