Kenya: KCB Joins Papss to Boost Cross-Border Transactions in Africa

27 February 2025
Capital FM (Nairobi)

Nairobi — KCB Group has signed up for the Pan-African Payment and Settlement System (PAPSS), becoming the first bank in East Africa to integrate the platform into its operations.

The move will enable KCB customers to enjoy faster settlements, lower currency conversion costs, and expanded market access across Africa, reinforcing the bank's role in driving cross-border trade and financial integration.

PAPSS, developed by Afreximbank, facilitates seamless intra-African payments, reducing reliance on foreign currencies and strengthening regional trade frameworks.

KCB Group CEO Paul Russo said the bank aims to catalyze trade and payments across Africa by leveraging digital capabilities and its regional footprint.

"PAPSS aligns with our strategy of supporting economic growth in Kenya and beyond by enabling seamless financial transactions," he said.

PAPSS CEO Mike Ogbalu hailed KCB's onboarding as a milestone for East Africa, saying it would enhance financial connectivity and support the implementation of the AfCFTA.

With a presence in seven East African countries, KCB's adoption of PAPSS provides its customers with greater efficiency in intra-African trade payments, supporting real-time transactions and reducing liquidity constraints for commercial banks.

The Central Bank of Kenya (CBK) has welcomed the development, with Banking & Payment Services Director Michael Eganza emphasizing the regulator's commitment to enhancing the payments ecosystem and deepening financial inclusion.

PAPSS now includes 15 central banks, over 150 commercial banks, and 14 payment switches across Africa, with expansion plans underway to strengthen the AfCFTA's impact on economic integration.

Read the original article on Capital FM.

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