A major power play unfolded in Kenya's fintech sector this week when Kenswitch announced a strategic partnership with Visa that could tip the scales in the fierce battle to control the country's next-generation payment systems. The timing could not be more critical.
The framework agreement, revealed on Thursday, positions the duo at the center of Kenya's push to create a unified, real-time payment network. Notably, how this deal directly challenges other players vying for the same prize.
The Stakes Are High
This is not just another corporate partnership. Kenya is redesigning its entire payments backbone through a fast payment system and national switch that would allow money to flow seamlessly across banks and mobile wallets in real time.
The Central Bank of Kenya sees this unified system as essential for lowering transaction costs and enabling customers to move money across different providers without friction. That vision has triggered what I can only describe as intense lobbying from multiple corners.
This collaboration with Visa is a significant milestone in our journey to deepen and modernize Kenya's payment ecosystem. By aligning with Visa's global capabilities, we can now co-create value-added solutions and next-generation processing and settlement infrastructure that will benefit every participant in Kenya's financial ecosystem from major banks, saccos, and fintechs to merchants and everyday Kenyans.
Those words from Kenswitch CEO John Mukono reveal the ambitious scope of what they are planning. The partnership combines Kenswitch's domestic infrastructure with Visa's global payment technology to develop new products for banks, fintechs, and merchants.
Competition From All Angles
The competitive landscape tells a fascinating story. In March 2025, Nigeria's national payments switch, Nigeria Inter-Bank Settlement System (NIBSS), partnered with local firm Ceva to pitch for a role in building Kenya's new payment infrastructure. That foreign interest signals just how valuable this project has become.
Meanwhile, Kenya's banking sector has been pushing hard to position Pesalink as the backbone of the new real-time network. The platform, operated by the Kenya Bankers Association through its fintech arm, Integrated Payment Services Limited (IPSL), already connects banks, telcos, and microfinance institutions.
Visa's Strategic Move
Chad Pollock, Visa's vice-president and general manager for East Africa, positioned the partnership as combining global innovation with local infrastructure. He emphasized supporting "safer, more efficient payment experiences and strengthen acceptance, processing and settlement across Kenya."
What strikes me about this deal is how it leverages Kenswitch's existing footprint. Established in 2002 as part of Kenya's payments modernization drive, Kenswitch operates a network spanning thousands of ATMs, point-of-sale terminals, and agent banking outlets.
The partnership promises integration with Visa's fraud prevention systems, data analytics, and digital acceptance tools. For a market where payment security remains a critical concern, these capabilities could prove decisive.
The Bigger Picture
This development reflects broader trends across Africa where countries are racing to modernize their payment systems. Kenya's approach of creating a unified, real-time network mirrors similar initiatives across the continent.
The winner of this payments switch race will not just process transactions. They will shape how Kenya's economy operates in the digital age, influencing everything from digital financial services to everyday commerce.
As regulators continue pushing for this unified system, the Kenswitch-Visa partnership represents a significant bet on combining local market knowledge with global technology infrastructure. Whether this strategy wins out remains to be seen, but it certainly raises the stakes for everyone else in the game.