Safaricom, Kenya's largest telecom, and commercial banks are making a strong case for upgrading Pesalink as the national payments backbone. In a report submitted to the Central Bank of Kenya (CBK), they argue that building a new fast payment system (FPS) would cost $200 million and take four years, making Pesalink a more feasible option.

The proponents of Pesalink, including the Kenyan Bankers Association (KBA), claim that upgrading the existing system would be faster and cheaper than starting from scratch. However, concerns have been raised about Pesalink's transaction cap, which currently stands at $8.5 billion (KES1.1 trillion). This cap, intended to manage liquidity, raises questions about whether the system can handle Kenya's growing payment needs if more financial service providers join.

Despite this limitation, influential players in Kenya's financial ecosystem see the Pesalink upgrade as a solution to the country's pressing lack of interoperability. The system is already bank-owned and operational, making it a practical alternative to a completely new FPS. However, the silence from fintechs on the matter is notable, with over 100 Kenyan fintechs yet to comment on the issue that affects them.

The absence of a unified body to present their opinions or potential behind-the-scenes engagement with regulators may be contributing to the fintechs' silence. Nevertheless, the talks concern them, and their voices are crucial in shaping the future of Kenya's payments system.

The Central Bank of Kenya holds the power to decide whether Pesalink will be upgraded or a new FPS will be built. As the regulator weighs its options, the fate of Kenya's payments system hangs in the balance. Will the CBK see Pesalink as a long-term solution, or will it opt for a new FPS, potentially fragmenting the market for another four years?

In related news, Bento, a Nigerian HR tech and payroll management startup, has laid off its entire tech team after delaying January salaries and facing protests from employees. The move has left the company in crisis, with a stalled payroll system and a team of young engineers stranded.

Meanwhile, Nigeria has launched the National Broadband Alliance to boost internet penetration, aiming for 70% broadband coverage by 2025. The initiative brings together state governments, telecom giants, and infrastructure providers to improve internet access in key locations such as schools, hospitals, and religious centers.

In other news, a deep dive into the lives of Chowdeck and Glovo superusers in Nigeria has revealed that these power users average 236 orders per month, valuing convenience over cost. The story highlights the fascinating world of Nigeria's most dedicated food delivery superusers.

Finally, the Africa Tech Summit in Nairobi, Kenya, is set to take place on February 12-13, 2025, providing a platform for African and international investors and tech leaders to drive growth across the continent.