Tanzanian fintech startup, NALA, has expanded into Kenya through a partnership with Equity Bank and payment utility PesaLink, in a move designed to tap into the country’s remittance inflows.
The collaboration has been touted to provide NALA with a faster route into East Africa’s most competitive payments market, avoiding the long and complex licensing process foreign entrants typically face.
With the deal, NALA will route diaspora transfers through PesaLink’s instant payment network and settle with Equity Bank. Recipients in Kenya will now receive funds in real time in mobile wallets or bank accounts, removing delays that have long been a frustration.
“Every year, billions are lost to cross-border payment fees worldwide,” said NALA’s co-founder and COO, Nicolai Eddy. “Our choice of infrastructure partners is essential to reducing fees and making cross-border payments more affordable for everyone.”
What You Should Know
Kenya’s reliance on diaspora remittances has never been stronger. According to the Central Bank of Kenya (CBK), inflows rose 18 percent in 2024 to a record $4.94 billion, making remittances the country’s second-largest source of foreign exchange after agricultural exports.
The majority of transfers originate from the US, UK, and Europe, which are markets where NALA has already established a strong footprint.
“Removing friction from cross-border payments drives inclusion and reliability for millions of Kenyans,” said Kenn Lisudza, Integrated Payments Service Limited (IPLS) product officer.
“Through this partnership, Equity Bank’s enabling role, Pesalink’s trusted infrastructure, and NALA’s global reach will deliver faster, cheaper remittances for households and businesses.”
What This Means
By leveraging partnerships with PesaLink, owned by the Kenya Bankers Association (KBA) through IPLS, and Equity Bank, NALA sidesteps the protracted licensing process overseen by the CBK.
Observers note this move mirrors strategies adopted by global competitors like WorldRemit, which have relied on local banking partnerships to accelerate entry into new markets.
Equity Bank framed the partnership as a step toward wider economic inclusion.
“This is more than a technical integration, it’s a strategic move to drive inclusive economic growth,” noted Samuel Ireri, the bank’s group head of international banking and payments.
Understanding NALA’s Strategy
Founded in 2017 by Benjamin Fernandes, industry leaders say NALA’s entry into Kenya marks its most ambitious push yet into East Africa’s most developed financial market.
The country’s payments landscape is dominated by entrenched players, including Safaricom’s M-PESA, international remittance firms such as Western Union and MoneyGram, and local banks with established diaspora channels.
Analysts note that NALA’s success in Kenya will depend on whether it can compete on price and speed in an already saturated market.
However, many admit that the fintech’s alliance with two of the country’s most trusted financial players gives it a strong platform to grow.
Talking Points
It is notable that NALA has chosen to expand into Kenya through partnerships rather than the long licensing route, highlighting how fintechs are finding creative pathways into heavily regulated markets.
This approach positions NALA as a practical player in one of Africa’s most competitive remittance corridors, where speed, cost, and trust matter most to everyday users. By leveraging PesaLink’s instant network and Equity Bank’s credibility, NALA enters with a foundation of reliability many newcomers lack.
At Techparley, we see how this model could accelerate regional integration for fintechs across Africa, where regulation often slows down innovation. Partnerships with trusted incumbents can give startups both legitimacy and reach.
The opportunity in Kenya is vast. However, the challenge ahead lies in differentiating itself from entrenched players like M-PESA and global giants such as Western Union. Adoption will depend not just on pricing, but also on how well NALA builds trust and visibility among Kenyan households.
With the right mix of partnerships, consumer education, and competitive pricing, NALA has the potential to reshape how cross-border payments flow into East Africa, setting a precedent for how African fintechs scale across borders.
