KCB Signs Up To The Pan-African Payment And Settlement System To Boost Cross-Border Transactions

KCB Group has signed up to the Pan-African Payment and Settlement System (PAPSS), reinforcing its commitment to enhancing cross-border trade and financial integration across the continent.

As the first bank in East Africa to integrate PAPSS into its systems, KCB customers will now be able to enjoy faster settlement times, reduced costs associated with currency conversion, and increased access to new markets across Africa.

PAPSS is a centralized financial market Infrastructure developed by the African Export-Import Bank (Afreximbank) to facilitate cross-border payments and trade transactions, reducing both costs and processing times. Notably, the system’s net settlement mechanism will help alleviate pressure on the demand for foreign currencies, supporting a more efficient and sustainable regional trade framework.

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The platform puts KCB at the forefront of facilitating trade across Africa as it continues to play a pivotal role in driving Africa’s economic transformation and reinforcing its position as a leading financial institution in the continent.

Speaking on the milestone, KCB Group CEO, Paul Russo, said: “We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint. Our entry into PAPSS aligns perfectly with our strategy of supporting economic growth in Kenya and across Africa by facilitating seamless financial transactions.”

With a presence in 7 East African countries, KCB brings on board its payments and collections expertise spanning over a century. This means that its customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies, especially when conducting intra-African trade payments.

PAPSS CEO, Mike Ogbalu welcomed KCB to the system noting: “KCB’s successful onboarding into PAPSS as the first bank in East Africa is a remarkable achievement that showcases their commitment to enhancing financial connectivity and supporting the implementation of the AfCFTA. I extend my heartfelt gratitude to the KCB team for their dedication and hard work in making this milestone possible. With PAPSS, KCB customers will experience unprecedented ease in cross-border transactions, paving the way for enhanced trade opportunities and economic growth across the continent.”

Mr. Michael Eganza CBK Director, Banking & Payment Services said: “The Central Bank of Kenya is keen to enable financial players to bolster the payments ecosystem for an opportunity to enable cross-border transactions. We are increasingly looking at reinvigorating the regulatory regime to promote innovation and deepen financial inclusion within the industry.”

PAPSS will deliver multiple advantages and efficiencies to intra-African trade payments that include a reduction in the duration and time variability of cross-border payments across Africa, support real-time payments, decrease the liquidity requirements of commercial banks for cross-border payments, remove transaction value limits, enable commercial banks to set the applicable exchange rates and strengthen oversight of cross- border payment systems by Central Banks.

“The liberation of the African economies will only be achieved when the balance of payment challenges within the continent are eliminated. With intra-Africa trade currently at 14%, there is an opportunity for players within the ecosystem to progressively evaluate the opportunities that can be harnessed to support with PAPSS leading the way on this,” said Lee Kinyanjui, Cabinet Secretary, Ministry of Investments, Trade & Industry.

The Pan-African Payment and Settlement System (PAPSS) is expanding, now including 15 Central Banks, over 150 commercial banks, and 14 switches across Eastern, Western, Northern, and Southern Africa. Its adoption has surged as financial institutions integrate PAPSS into their digital platforms, promoting greater access to services and economic integration. The network expects to add more Central Banks soon, broadening citizen benefits from the African Continental Free Trade Area (AfCFTA).

Read Also: PAPSS: Unlocking Africa’s Trade Potential With Seamless Payments