NALA, a Tanzanian fintech company, has entered the Kenyan market to revolutionise the $4.9 billion remittance sector by providing swift and cost-effective payment solutions. By strategically collaborating with Equity Bank and payment utility Pesalink, NALA circumvents the typical licensing obstacles and capitalises on the existing infrastructure to facilitate real-time, seamless cross-border money transfers for Kenya’s diaspora community.
Tapping Kenya’s thriving remittance market
In 2024, Kenya’s remittances reached a record high of $4.95 billion, ranking as the second-largest source of foreign exchange after exports. By utilising Pesalink’s instant payment network to route funds, NALA’s launch in Nairobi capitalises on this substantial market. Equity Bank then manages settlements, ensuring beneficiaries receive funds directly into their bank accounts or mobile wallets.
Kenn Lisudza, Chief Product Officer at PesaLink, says this partnership opens up local rails to fintechs and merchants, allowing quicker and more predictable international transactions.
NALA’s Chief Operating Officer, Nicolai Eddy, explained that the move aims to cut the $7.3 billion Africans lose annually to remittance fees, money that could otherwise fund education, healthcare, and small enterprises for families.
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A competitive edge through collaboration
Instead of applying for a Central Bank of Kenya licence, which can be lengthy, NALA leverages partnerships with licensed entities to scale quickly and avoid regulatory delays.
Equity Bank’s Samuel Ireri describes the collaboration as a strategic move to foster inclusive economic growth. The Kenyan remittance space, dominated by Safaricom’s M-Pesa, Western Union, MoneyGram, and local banks, now faces new competition from NALA’sinnovative approach.
NALA founder and CEO Benjamin Fernandes highlights Kenya as a crucial part of their strategy to modernise Africa’s financial infrastructure and advance their B2B payments platform, Rafiki, for cross-border corporate payments.
Fernandes affirms that it is reinvesting its recent $40 million funding round to build its proprietary payment rails, eliminating costly intermediaries and enhancing payment reliability across the continent.
NALA, launched in 2017 and rapidly expanding across Africa and beyond, aims to bring faster, more affordable, and more direct payment capabilities to Kenya. It challenges established networks with a fresh alternative that puts more money back in users’ pockets.