NALA Expands Into Kenya via Equity Bank, Pesalink Partnership

STARTUP VENTURE CAPITALSeptember 4, 2025 at 11:53 AM UTC

TLDR

Tanzanian fintech NALA has entered Kenya through a partnership with Equity Bank and payment platform Pesalink, targeting the country’s fast-growing remittance market
The deal allows NALA to process diaspora transfers via Pesalink’s real-time payment rails and settle with Equity Bank
Kenya’s remittances climbed 18% in 2024 to $4.94 billion, according to the central bank, making them the second-largest source of foreign exchange

Tanzanian fintech NALA has entered Kenya through a partnership with Equity Bank and payment platform Pesalink, targeting the country’s fast-growing remittance market. The deal allows NALA to process diaspora transfers via Pesalink’s real-time payment rails and settle with Equity Bank, enabling recipients to access funds instantly through bank accounts or mobile wallets.

Kenya’s remittances climbed 18% in 2024 to $4.94 billion, according to the central bank, making them the second-largest source of foreign exchange after agricultural exports. Most inflows originate from the U.S., U.K., and Europe, the same regions where NALA has built its customer base.

By partnering with Equity and Pesalink — which is owned by the Kenya Bankers Association through IPLS — NALA bypasses Kenya’s lengthy licensing requirements for foreign entrants. The approach mirrors strategies used by WorldRemit and other cross-border payment companies.

Equity said the partnership aligns with its Africa Recovery and Resilience Plan. NALA, founded in 2017 by Benjamin Fernandes, said it aims to lower transaction costs and improve reliability in one of Africa’s most competitive payment corridors.

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Key Takeaways

NALA’s entry into Kenya highlights the competitive dynamics of Africa’s remittance market, where fees remain among the highest globally. With inflows approaching $5 billion annually, Kenya is a key corridor, but it is dominated by incumbents such as M-PESA, international money transfer firms, and established banks. By leveraging Pesalink’s infrastructure and Equity Bank’s scale, NALA sidesteps regulatory hurdles while positioning itself to compete on speed and cost. Success will depend on how effectively it can undercut incumbents on pricing while delivering seamless transfers from diaspora hubs in the U.S. and Europe. For Equity, the partnership expands its regional payments footprint, while for NALA it marks the company’s most ambitious move yet into East Africa’s financial center. The collaboration underscores a wider trend of fintechs partnering with banks and payment utilities to gain faster entry into regulated markets across the continent.

Startups

NALA

Tanzania

Fintech

Remittances

Equity Bank

Pesalink