Kenya is in talks to adopt India’s Unified Payments Interface (UPI), in a move that could transform the country's digital payments landscape.

Officials from the National Payments Corporation of India (NPCI) confirmed that discussions are underway with the Central Bank of Kenya (CBK) to explore how UPI can be integrated into Kenya’s financial system.

The interface has played a key role in driving financial inclusion, improving remittance services, and boosting payment efficiency in India.

“We are conducting an in-depth study and are already engaging with CBK to understand the ecosystem and explore how interoperability can be achieved,” NPCI officials said in New Delhi.

They also revealed that UPI is being rolled out in Namibia as part of a wider international expansion.

The discussions with Kenya are focused on developing the necessary digital infrastructure, after which the system would be adapted to fit the country’s financial environment.

UPI enables users to link multiple bank accounts to a single mobile application, supporting a range of services including fund transfers, merchant payments, and bank-to-bank transactions.

Much like Kenya’s M-Pesa, UPI supports instant payments but operates at a broader scale.

In May 2025 alone, the system processed 18.67 billion transactions worth $293 billion, accounting for over 80 percent of India’s retail digital payments.

It also supports QR code payments, peer-to-peer transfers, online shopping, recurring billing, USSD-based transactions for basic phones, and central bank digital currency transfers.

Kenya has already laid a foundation for digital payments through its National Payments Strategy (2022–2025), which aims to create a secure, inclusive, and interoperable payments system.

One of the key goals under this strategy is the introduction of a Fast Payment System to allow instant transactions between banks, mobile wallets, and fintech platforms.

Although the system is yet to be launched, its intended features closely mirror those of UPI.

The possible entry of UPI into the Kenyan market could reshape the digital payments sector, offering competition to M-Pesa.

While M-Pesa has over 34 million users and is praised for its role in financial inclusion, its transaction charges remain a concern among users and businesses.

UPI, on the other hand, provides ultra-low transaction costs and no integration fees, making it attractive to merchants and businesses aiming to reduce costs.

India has also shown interest in partnering with Kenya on its digital identification efforts, which have faced several setbacks.

Aadhaar, India’s digital ID system, is a 12-digit unique identifier issued by the Unique Identification Authority and serves as a digital base for citizen services and public records.

The system includes individuals of all ages, is cost-effective, prevents duplication, and improves transparency in service delivery.

Aadhaar has been vital in the implementation of government programs in India.

Kenya’s attempts at a digital registry—such as Huduma Namba and Maisha Namba—have struggled with rollout and adoption.

A partnership based on India’s Aadhaar model could offer a fresh push to modernize Kenya’s identification and service delivery systems.