Kenya is in talks to adopt India’s Unified Payments Interface (UPI), a move that could significantly reshape the country’s digital finance ecosystem and challenge established platforms like M-Pesa.
The Central Bank of Kenya (CBK) is currently engaging with the National Payments Corporation of India (NPCI), which developed and operates UPI, to explore the feasibility of introducing the system locally. The goal is to enhance interoperability, boost financial inclusion, and support real-time payments across the banking and fintech sectors.
Speaking from New Delhi, NPCI officials confirmed that groundwork is underway, with ecosystem consultations already in progress. “We’re conducting an in-depth assessment and are already in discussions with the CBK to understand the payment environment and lay the foundation for interoperability,” they noted, adding that UPI is also being rolled out in Namibia.
If successful, the collaboration would involve developing local digital infrastructure and customizing the UPI platform to align with Kenya’s financial systems.
UPI, which has become the backbone of India’s digital payment revolution, allows users to manage multiple bank accounts within a single mobile application. It streamlines peer-to-peer transfers, merchant payments, and bank services under one platform. In May 2025 alone, UPI processed over 18.6 billion transactions worth $293 billion more than 80% of India’s retail digital payments.
The platform supports a wide range of payment services, including QR code transactions, website payments, recurring billing, feature phone (USSD) access, and even integration with central bank digital currencies.
Kenya, meanwhile, has been working under its National Payments Strategy (2022–2025) to create a more inclusive and efficient digital finance environment. The CBK has been developing a Fast Payment System aimed at unifying payments across banks, mobile money platforms, and fintechs goals that mirror UPI’s strengths.
If implemented, UPI could bring sweeping changes to the market, particularly impacting M-Pesa’s dominance. While M-Pesa has played a crucial role in expanding financial access with over 34 million active users its high transaction costs have sparked criticism from both businesses and consumers.
In contrast, UPI offers extremely low transaction fees and charges no integration costs for businesses, making it an attractive alternative for small and large enterprises alike.
India has also expressed readiness to collaborate on Kenya’s digital identity ambitions. Officials indicated that India would be willing to support a national digital ID rollout similar to its Aadhaar system an initiative Kenya has previously attempted with the stalled Maisha Namba project.
Aadhaar is a 12-digit biometric-based identification number that centralizes citizen data to streamline access to government services and enhance identity verification. It is universally issued, regardless of age or income.
If Kenya embraces UPI and similar digital innovations, it could usher in a new era of affordable, interoperable, and inclusive digital financial servicesp otentially setting a new standard for the continent.
