I&M Bank’s Ni Sare initiative: free transfers target hidden costs for small traders

I&M Bank through its Ni Sare initiative targets the hidden costs facing small businesses. For a small trader in Nairobi, the cost of running a business is not limited to rent, stock and transport.

Small transaction charges incurred while moving money between a mobile wallet and a bank account can also eat into earnings, particularly for entrepreneurs operating on thin margins.

A mama mboga restocking vegetables several times a week, a boda boda operator managing daily collections or a salon owner paying suppliers must keep money moving.

Yet every charge deducted along the way reduces the amount available for the next purchase, household expenses or business expansion.

It is this everyday financial pressure that I&M Bank’s Ni Sare initiative seeks to address by eliminating fees on bank-to-mobile-money transfers for eligible customers.

Ni Sare, which means “it’s free”, was initially introduced for personal account holders before being extended in April 2024 to sole proprietors, allowing one-person businesses to benefit from free transfers between their bank accounts and mobile money.

The initiative targets a common challenge for Kenya’s micro-entrepreneurs, many of whom receive payments through M-Pesa but rely on bank accounts for savings, financial management and access to formal financial services.

For a large business, a small transfer fee may have little impact on its overall finances.

For a small enterprise working with narrow profit margins, however, repeated charges can accumulate into a meaningful expense over time.

A trader who spends hundreds of shillings each month on transfer fees loses money that could otherwise go towards restocking, paying bills or meeting other operating costs.

I&M’s approach removes that particular cost for qualifying bank-to-mobile-money transfers.

The bank expanded the initiative to sole proprietors in April 2024 following its earlier rollout for personal account holders.

At the time, the move was framed as a response to customer concerns about the high cost of living and the expense of transferring money to mobile wallets.

Beyond the immediate savings, the initiative addresses how small businesses manage their finances.

Entrepreneurs who keep personal and business funds together can struggle to establish how much their businesses earn, what they spend and how much they can safely reinvest.

Separating business money from household spending can make it easier to track expenses, plan purchases and maintain working capital.

By reducing the cost of transferring funds, Ni Sare makes it less expensive for eligible customers to move money between their bank accounts and mobile wallets as business needs arise, rather than delaying transfers to avoid charges.

There is also a potential longer-term benefit to maintaining a consistent banking record.

When business transactions pass through a bank account, they can contribute to a financial history that may help lenders assess an entrepreneur’s activity when considering credit applications.

Small businesses whose transactions are scattered across mobile-money records and handwritten notebooks may find it harder to demonstrate their financial performance.

Consistent banking activity can provide an additional record of cash flow, although it does not guarantee access to credit.

For entrepreneurs seeking to grow, this distinction matters: managing money systematically can help establish a clearer picture of business performance and support future financial decisions.

Ni Sare does not eliminate the broader challenges facing small businesses, including expensive credit, unpredictable demand, rising input costs and changes in the tax environment.

Its benefits also depend on customers using eligible I&M Bank accounts and making transfers covered by the initiative.

Clear information on the applicable account requirements, transfer types and terms remains important so customers understand exactly which transactions qualify.

Nevertheless, removing transfer charges addresses one recurring cost that small businesses can otherwise struggle to avoid.

The bank can strengthen customer relationships, while eligible entrepreneurs retain more of their earnings for day-to-day operations.

For businesses where every shilling counts, reducing the cost of moving money may be a modest intervention, but one with practical implications for how owners manage their finances.

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