Kenswitch unveils interbank cash transfer service for users

Kenswitch Ltd has launched a system that will allow users to transfer cash between banks registered on its shared network on a real-time basis.

The Domestic Interbank Transfer Service (Dits) is accessible through the existing infrastructure of registered banks and deposit-taking institutions like ATMs, online banking platforms, mobile banking applications and agent banking.

Speaking on Tuesday during the launch of the platform, Kenswitch managing director George Wainaina said that development of the system was based on agency banking model which allow customers to make real-time deposits into accounts.

“We are waging war against cash and cheques. We want to get rid of paper from the economy and are giving customers a choice whether to look at existing players, or use a cost effective platform that will guarantee transfer of funds between four and six seconds,” he said.

Dits allow movement of funds as little as Sh50 to a maximum of Sh1 million from one bank account to another or top up of prepaid credit cards through the mobile phone.

The tariffs range from as low as Sh5 to as much as Sh200 depending on the value transacted. A customer seeking to transfer between Sh1,000 and Sh9,999 will pay Sh20 while one seeking to transfer more than Sh500,000 will pay the Sh200 maximum limit. 

All transfers below Sh1,000 will be charged a fee equivalent of 1.5 per cent of the value.

“Dits optimises shared infrastructure. A lot of banks have invested in the existing switches so there is no need to install another separate switch for these transactions to be done,” he said.

“If the financial institution is not available during the time of the transaction then the funds will be reversed.”

Mr Wainainah said the platform can be integrated by banks seeking easier channels for loan repayments as well as counties in automation of their revenue collection.

Businesses can also save on disbursement of funds like salaries through the cost effective platform. It will also make it easier to recharge pre-paid cards in the transport sector using the platform.

“While we will continue to offer person-to-person transfers our main focus will be on the business sector because many small and medium enterprises continue to rely on banking instruments like cheques and electronic funds transfers that can benefit greatly by using the platform,” he added.