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Kenyan banks and merchants could pay 50% to 60% less to process online card payments under a new partnership between local payments switch KenSwitch and global payments technology firm Wipmo, announced in Nairobi on October 30, 2026.
The deal moves online card processing and fraud monitoring onto a domestic platform. Today, most card transactions made online in Kenya are acquired entirely outside the country, which adds cost and limits how quickly local banks can investigate fraud or fix failed payments, The Star reported.
What KenSwitch says online card payments in Kenya will cost
KenSwitch Chief Finance and Operations Officer Wacera Maina said: “The cost to the bank will reduce by approximately 50 to 60 per cent, which translates to the same cost reduction for the merchant.” She said the goal is a payment system in which consumers eventually pay less for goods and services as businesses save on transaction costs.
No new merchant fee schedule has been published. Whether savings reach shops and customers will depend on how banks reprice their merchant services.
Fraud is the other driver
Card fraud losses in Kenya hit KSh263.29 million in 2024, about 16.9 times the KSh15.6 million recorded in 2023, according to a Central Bank of Kenya report cited by The Star. Local processing is meant to let Kenyan banks see and act on suspicious activity faster.
The new system will add:
- stronger customer authentication, including biometric verification;
- risk tools that check the location, device and behaviour behind each transaction;
- local support for banks and merchants when payments fail.
What is not covered
The project starts with online card payments only. Mobile money and account-to-account transfers are left out because, Maina said, they already run on locally managed security arrangements. So M-Pesa, Airtel Money and PesaLink payments are unaffected.
What it means for small online sellers
If you sell online and accept Visa or Mastercard through a payment gateway, card fees are usually your biggest payment cost after M-Pesa charges. A lower processing cost at the bank level could eventually show up as cheaper gateway rates, but that is not guaranteed. For now, compare gateways on their published rates. Kenyans who pay for foreign services by card can also look at the M-Pesa GlobalPay virtual card and its charges.
The deal adds to a busy year for card infrastructure in East Africa, including Mastercard’s five-year deal with Moovn on prepaid cards.
How online card payments in Kenya are processed today
When you pay a Kenyan online shop by card, the payment passes through the shop’s payment gateway, an acquiring bank or processor, the card network and your own bank. If the acquiring and fraud-screening steps happen abroad, the Kenyan bank pays foreign processing fees, often in dollars, and has less direct control over disputes. Shifting those steps to a local switch cuts the foreign leg, which is where KenSwitch says most of the saving comes from.
FAQ
What is KenSwitch?
KenSwitch is a Kenyan payments switch owned by local banks that routes card and ATM transactions between banks.
Will online card payments in Kenya get cheaper?
KenSwitch says bank and merchant processing costs could fall 50-60%. Whether customers pay less depends on how banks and gateways pass on the savings.
Does the KenSwitch-Wipmo deal affect M-Pesa?
No. It covers online card payments only. Mobile money and account-to-account transfers are excluded.
How big is card fraud in Kenya?
CBK data show card fraud losses of KSh263.29 million in 2024, up from KSh15.6 million in 2023.
Updated October 31, 2026.
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