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Banking
Safaricom and Kenyan banks push Pesalink as national payments backbone
Safaricom, Kenya’s largest telecom, and commercial banks are once again making their case known. After submitting a report to the Central Bank of Kenya (CBK) stating that building a new fast payment system (FPS) could cost the apex bank $200 million and take four years, both parties are trying to convince the CBK that upgrading the Pesalink should be the way to go.
Safaricom and the KBA argue that improving Pesalink would be faster and cheaper than starting from scratch. However, a key concern is Pesalink’s transaction cap; the payment infrastructure, which currently allows only inter-bank transfers, supports $8.5 billion (KES1.1 trillion) in transactions, which raises questions about whether it can handle Kenya’s growing payment needs should other financial service providers come onboard. Compared to the payment infrastructure of some other African countries, this falls short.
Yet, this cap exists to manage liquidity, ensuring that banks have enough cash to settle transactions in real-time. Because their liquidity isn’t evenly distributed—bigger banks like Equity, KCB, and Co-op Bank have stronger reserves—smaller banks will struggle to process large payments quickly.
If Pesalink is upgraded and more financial service providers join, smaller banks will likely have to secure additional funding or seek access to central bank liquidity to process high-value transactions to avoid a liquidity shortfall.
Despite this, influential players in Kenya’s financial ecosystem still see the Pesalink upgrade as a win. It will immediately solve the country’s pressing lack of interoperability, a problem that has made it difficult to send and receive money across banks, fintechs, and mobile money operators.
The KBA is pro-Pesalink because the system is already bank-owned and operational, which banks see as a practical alternative to a completely new FPS. Yet, in all these talks about the Pesalink versus new FPS debate, there’s one notable omission in discussions: fintechs. Kenyan fintechs—over 100 of them—have yet to comment on the matter that affects them. This is likely due to the absence of a unified body to present their opinions—or they could be engaging regulators behind-the-scenes.
However, the talks concern them, but fintechs may not be speaking up to prevent scrutiny from the regulator.
Yet, the gavel is firmly in the hand of the CBK: like the proponents, does it see Pesalink as a long-term solution for Kenya’s payments? Or, will carrying the weight of building a new FPS and suffering the fragmentation problem for another four years give it the relief that it wants?
Afincran Connect: A Fintech Mixer by Fincra 
Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections.
Nairobi | 
18:00 – 21:00 EAT
Limited spots—RSVP now.
Layoffs
Bento lays off its entire tech team over protests for delayed salaries
Bento, a Nigerian HR tech and payroll management startup, just delivered a masterclass on what not to do as a startup leader. After delaying January salaries amid a financial crunch, founder Ebun Okubanjo abruptly laid off the entire tech team when they protested for delayed salaries owed in January 2025. This comes hot on the heels of public scrutiny and allegations that the company forged tax receipts and failed to remit millions in taxes and pensions.
The result of the layoff is a stalled payroll system, a company in crisis, and a team of young engineers left stranded. Okubanjo, who resigned on January 30, defended the salary delay as “strategic” and treated the protest as resignations. He deactivated employees’ work emails without pay and offered to divide withheld salaries among those willing to stay—but no one accepted.
Bento’s now-dismissed tech team, composed mainly of young engineers, had been with the company for just over a year. Their departure has severely disrupted operations, particularly payroll processing, which had already faced manual intervention due to payment processor issues.
Despite the chaos, Bento claims transactions were intentionally halted to facilitate a transfer of platform credentials from Okubanjo to an interim overseer. However, at least two investors have denied knowledge of the company’s official stance.
With employees raising concerns about the long-term impact on their careers, Bento’s latest crisis raises serious questions about the company’s future. The situation leaves little confidence in the company’s ability to recover.
Telecoms
Nigeria launches National Broadband Alliance to boost internet
Nigeria is on a mission to boost its internet game with the National Broadband Alliance for Nigeria (NBAN), aiming for a whopping 70% broadband penetration by 2025. Spearheaded by the Nigerian Communications Commission (NCC), this initiative targets key locations like schools, hospitals, and even religious centres—because everyone deserves divine Wi-Fi speed.
To make this dream a reality, NBAN is bringing together state governments, telecom giants, and infrastructure wizards. The pilot programme kicks off in eight states, while the NCC has sweetened the deal (or soured it, depending on your perspective) with a 50% tariff hike for telecom operators—on the condition that service quality improves within three months. No pressure!
Meanwhile, MTN and 9mobile are teaming up for a roaming and spectrum-sharing deal, proving that even telecom rivals can be friends when it comes to better coverage. But challenges remain—low 4G and 5G adoption, multiple taxes, and, of course, the occasional infrastructure vandal. With NBAN pushing for regulatory streamlining and private-sector investment, Nigeria’s internet future is looking bright—hopefully bright enough to finally stream movies without buffering.
You can now integrate Paystack with Vendy
Vendy makes it easier than ever for businesses on WhatsApp to buy, sell, and receive payments. With Paystack integration, you gain access to secure local payment methods and fast, hassle-free payouts directly to your bank account. Learn more here →
Consumer Tech
Inside the lives of Chowdeck and Glovo superusers
How much do you spend on food delivery per month?
In Nigeria—where food claims 59% of household income—apps like Chowdeck and Glovo have evolved from a luxury to an indispensable productivity tool for the urban elite. Our latest deep dive pulls back the curtain on Nigeria’s food delivery superusers, who average as many as 236 orders per month in their quest to save precious time.
Meet Anita*, a Lagos-based marketer whose resolve to cut back on delivery orders crumbled just two weeks into January as mounting deadlines pushed her back into old habits. Then there’s Ada, a product designer who values the predictable efficiency of Chowdeck, even if it means bypassing variety. And Dolapo, a fintech director who seamlessly juggles subscriptions like ChowPass and Glovo Prime, turning a ₦400k monthly spend into her secret weapon for productivity.
These power users know that every minute saved is money earned—even if it comes with a high price tag. Curious about how they balance soaring costs with everyday convenience?
Dive into the full story and discover the fascinating world of Nigeria’s most dedicated food delivery superusers.
Big News! Prestmit Launches data eSIM!
Prestmit, a leading digital transaction platform in Africa, has launched a data eSIM feature via the Prestmit App! Travel to over 100 countries without worrying about roaming fees or finding a SIM card. Download the app now to enjoy easy connectivity!
CRYPTO TRACKER
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$97,832 |
– 0.51% |
– 1.88% |
| Ether |
$2,718 |
+ 1.70% |
– 26.33% |
 XRP |
$2.49 |
– 2.13% |
+ 3.36% |
| Solana |
$204.05 |
+ 0.01% |
+ 5.66% |
* Data as of 06:35 AM WAT, February 5, 2025.
Events
- The Africa Tech Summit in Nairobi, Kenya taking place 12th & 13th Feb 2025 will once again provide unrivaled insight, networking and business opportunities for African and international investors and tech leaders who want to drive growth across the Continent. The event connects 2000+ industry leaders, 1000+ companies, and 160+ speakers via four tracks plus workshops, expo and multiple fantastic networking opportunities. Tickets are on sale now.
- Join Africa’s creative innovators, entrepreneurs & leaders at The Omniverse Africa Summit, at Landmark Event Centre, between 25 – 28 Feb 2025. Explore transformative tech, business & sustainable growth. Register now.
- GITEX AFRICA 3rd edition is NOW OPEN for registration. Africa’s largest tech and start-up event will be held from 14-16 April 2025 in Marrakech, Morocco. Attend to see the leading brands in tech, and the most innovative startups, and network with tech leaders, investors, speakers and government delegations from across Africa and across the globe. Register here.
Written by: Ngozi Chukwu, Frank Eleanya, & Adonijah Ndege
Edited by: Timi Odueso & Olumuyiwa Olowogboyega
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I am the CEO of 9JAGISTLAND.My name is Adedeji Timothy and my co-owner is Oyekola Damilare.This blog is born out of our passion to educating to people in all aspect of internet life.We are enthusiastic about writing posts and articles online.
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