Dear Entrepreneur, This Is How How I Cut Banking Costs As An SME

As a small and medium-sized enterprise (SME) owner, one of the most important lessons I have learned is that profitability is not only about increasing sales but also about controlling costs. While many entrepreneurs focus on reducing rent, inventory, or staffing expenses, banking and transaction costs are often overlooked. These seemingly small charges can quietly eat into profits over time.

For years, my business relied heavily on mobile money and bank transfers to pay suppliers, receive customer payments, settle utility bills, and manage day-to-day operations. Every transaction attracted a fee. Individually, these charges appeared insignificant, but when multiplied across dozens or even hundreds of transactions every month, they became a substantial operating expense.

The reality is that transaction costs are a hidden burden for many SMEs. Financial experts define transaction costs as expenses incurred when conducting economic exchanges, including transfer fees, processing charges, and other administrative costs. These expenses reduce the efficiency of business operations and directly affect profitability. As businesses grow and transaction volumes increase, the cumulative impact of these costs becomes even more significant.

That is why I&M Bank’s Ni Sare initiative has been such a transformative development for my business. The program offers free bank-to-mobile money transfers and free mobile money-to-bank transfers, eliminating charges that many businesses have traditionally considered unavoidable. The initiative was specifically introduced to help entrepreneurs reduce operating costs and retain more of their earnings, making financial transactions more affordable and efficient for SMEs.

The Hidden Cost of Everyday Transactions

Before adopting “Ni Sare,” my business incurred transaction fees at multiple points throughout the payment cycle. Payments to suppliers, transfers to employees, customer refunds, and movement of funds between mobile wallets and bank accounts all attracted charges.

For example, a business making 20 to 30 transfers daily can easily spend thousands of shillings each month on transaction fees alone. These costs may not appear on a traditional expense report as prominently as rent or salaries, but they still reduce cash flow and profitability.

What made matters worse was that transaction fees often discouraged frequent movement of funds. At times, I delayed transfers or consolidated payments simply to avoid additional charges. This occasionally affected operational flexibility and slowed decision-making.

How Ni Sare Changed the Equation

The introduction of free bank-to-mobile and mobile-to-bank transactions immediately removed one of my recurring business expenses. Instead of budgeting for transfer charges, I could redirect those funds toward activities that generated value.

The benefits were immediate:

Lower Operating Costs

The most obvious advantage was direct cost savings. Every transaction completed without a fee represented money retained within the business. Over months, the savings became substantial and measurable.

Improved Cash Flow Management

Because transfers no longer attracted charges, I could move money freely between my bank account and mobile wallet whenever necessary. This improved liquidity and ensured that funds were available exactly where and when they were needed.

Faster Supplier Payments

The elimination of transfer fees encouraged more frequent and timely supplier payments. Instead of waiting to batch transactions together, I could settle invoices immediately, strengthening supplier relationships and improving trust.

Greater Convenience for Customers