Transaction Stress Is a Biashara Problem: Why I&M Bank’s Free M-Pesa Transfers Matter More Than Ever

In Kenya, biashara does not sleep. From the mama mboga in Gikomba to the online thrift seller in Rongai, from the boda boda rider in Kisumu to the hardware supplier in Eldoret, business today moves at the speed of mobile money. M-Pesa has become the bloodstream of Kenya’s informal and formal economy. It is how businesses receive payments, settle suppliers, pay workers, and keep operations moving.

But as every biashara owner knows, transaction costs are no longer a small inconvenience. They are becoming a business expense powerful enough to eat into already thin margins. Every transfer fee, every withdrawal charge, every unexpected deduction slowly chips away at profits. For small businesses operating in a difficult economy, transaction stress is now a real biashara problem.

That is why I&M Bank’s decision to waive bank-to-M-Pesa charges is not just another banking promotion but a strategic intervention in support of Kenyan businesses and financial inclusion. The bank announced zero fees for mobile money wallet transfers via its I&M On The-Go platform, positioning itself as one of the few financial institutions actively reducing the burden of daily transaction costs on customers. [1]

At a time when businesses are struggling with rising fuel costs, expensive credit, taxation pressure, and reduced consumer spending, removing transaction charges sends a powerful message: biashara needs breathing space.

The timing of this move is especially significant. The proposed Finance Bill 2026 seeks to introduce a 16 percent VAT on digital payment platforms, including M-Pesa, Airtel Money, Pesapal, and Kenswitch. If implemented, the tax could make digital transactions more expensive for millions of Kenyans who rely on mobile money daily.

For large corporations, such additional costs may simply become part of operating expenses. But for SMEs and informal traders, the impact is direct and painful. A biashara owner can easily make 20 to 50 transactions in a day. When charges accumulate across payments to suppliers, customer refunds, staff wages, and logistics, the result is reduced profitability and slowed cash flow.

Kenya’s economy is heavily powered by SMEs. Yet many of these businesses operate on razor-thin margins. The difference between survival and collapse can sometimes be a few hundred shillings saved daily. In such an environment, free transactions are not a luxury. They are economic relief.

I&M Bank appears to understand this reality better than most. By removing transfer charges, the bank is effectively returning money into the hands of biashara owners. That money can now go toward stock, salaries, transport, or reinvestment into growth. It may look small on paper, but in the daily arithmetic of biashara, every shilling matters.

More importantly, affordable digital banking strengthens financial inclusion. Many Kenyans still hesitate to fully integrate banking into their daily lives because of hidden charges and unpredictable fees. When customers feel punished for moving their own money, they tend to avoid formal banking systems altogether.

Free transfers change this psychology. They encourage more people to save, transact digitally, and participate in the formal financial ecosystem. This is especially important for young entrepreneurs, gig workers, and informal traders who are increasingly building businesses through mobile platforms.

There is also a wider economic implication. Kenya has spent years positioning itself as Africa’s fintech leader. Mobile money innovation transformed the country into a global case study for financial technology. However, over-taxing digital transactions risks slowing that momentum. Excessive transaction costs can discourage digital payments and push some traders back into cash-based operations, reducing transparency and efficiency in the economy.

This is why private sector interventions such as I&M Bank’s become critical. While policymakers pursue revenue collection, financial institutions must innovate in ways that protect customers from transactional fa