SBM Bank Kenya has significantly shaken up the local banking landscape by introducing a flat Sh20 fee for bank-to-bank transfers, a move that is set to intensify competition within the sector and put pressure on established players to review their transaction charges.
The bank announced the new pricing model this week, touting it as part of its broader strategy to make banking more affordable and accessible to Kenyans.
The new Sh20 fee applies to all interbank transfers made through SBM’s digital platforms, including its mobile app and internet banking services. This is a steep drop from the market average, where many banks charge between Sh50 and Sh200 per transaction depending on the amount and destination bank.
In a statement, SBM Kenya’s CEO Moezz Mir stated that the reduced transfer charges reflect the bank’s customer-centric approach and commitment to financial inclusion.
“We recognize that high transaction fees remain a barrier for many Kenyans, especially those who rely on bank transfers for daily business and personal transactions. Our new pricing aligns with our mission to simplify banking and reduce the cost burden on our customers,” he said.
Industry analysts view the move as a bold attempt by SBM to grow its market share in a highly competitive environment dominated by large banks such as KCB, Equity, and Co-operative Bank.
By offering lower fees, SBM is positioning itself as a more attractive alternative for price-sensitive customers, particularly small business owners, salary earners, and individuals who make frequent transfers.
The decision comes at a time when the Central Bank of Kenya has been encouraging financial institutions to reduce transaction costs to support broader economic recovery and digital adoption.
Customers have welcomed SBM’s pricing shift, with many taking to social media to applaud the initiative and encourage other banks to follow suit.
With the new Sh20 transfer fee now in effect, the onus is on rival banks to respond or risk losing customers to SBM’s aggressive and consumer-friendly pricing strategy.
Written By Ian Maleve
