A Milestone for KCB and African Trade
KCB Group has taken a bold step in transforming financial transactions across Africa by integrating with the Pan-African Payment and Settlement System (PAPSS).
As the first bank in East Africa to adopt this system, KCB is set to revolutionize cross-border trade, reducing transaction costs, eliminating delays, and making business more accessible for millions of Africans.
This integration directly supports small businesses, entrepreneurs, and exporters who struggle with high fees and long settlement times when conducting trade across African borders.
With KCB leveraging PAPSS, local traders and businesses can now receive payments instantly and in their local currency, without the burden of costly currency conversions.
Empowering Small Businesses and Entrepreneurs
For years, small and medium-sized enterprises (SMEs) across Africa have faced financial barriers that limit their growth.
Delayed payments and high transaction costs have slowed down business operations, forcing many to rely on expensive international banking channels.
With PAPSS integration, KCB is changing this narrative.
Faster Transactions: Businesses can now receive payments in real-time, allowing them to reinvest quickly and expand their operations.
Lower Costs: By eliminating the need for multiple currency conversions, SMEs can save money, making cross-border trade more profitable.
Financial Inclusion: More businesses, especially those in rural areas, can now access digital payment solutions without depending on cash transactions or foreign intermediaries.
Impact on Regional Trade and Economic Growth
Africa’s intra-continental trade has remained stagnant at around 14%, largely due to inefficient payment systems and high transaction fees.
KCB’s adoption of PAPSS is a major step toward solving this problem by providing a seamless, cost-effective, and efficient platform for businesses to transact across Africa.
Paul Russo, CEO of KCB Group, emphasized the significance of this move.
“We are committed to driving Africa’s economic growth by removing trade barriers. Our integration with PAPSS will facilitate seamless financial transactions, empower businesses, and create new economic opportunities across the continent.”
A Boost for Local Traders and Farmers
For a Kenyan farmer exporting coffee to Ghana or a textile manufacturer in Uganda supplying products to Nigeria, the ability to receive payments instantly without worrying about exchange rate losses is a game changer.
KCB’s digital banking expertise, together with PAPSS, ensures that these traders can conduct business without unnecessary financial obstacles.
Mike Ogbalu, CEO of PAPSS, welcomed KCB’s entry into the system, stating:”This integration is a major achievement, reinforcing KCB’s commitment to enhancing financial connectivity and supporting the African Continental Free Trade Area (AfCFTA). The impact on trade and business growth will be significant.”
Strengthening Africa’s Financial Ecosystem
By integrating with PAPSS, KCB is also helping to reduce reliance on foreign currencies such as the US dollar and the euro for intra-African trade. This move:
Reduces foreign exchange risks, making it easier for businesses to plan and expand.
Encourages economic stability, as more businesses and governments rely on Africa’s own financial infrastructure rather than external systems.
The Future of Seamless Payments in Africa
With PAPSS expanding rapidly, already integrating 15 central banks, over 150 commercial banks, and 14 payment switches across Africa, its impact on financial inclusion and economic growth is undeniable.
As more financial institutions follow KCB’s lead, businesses and individuals across Africa will enjoy greater access to banking services, improved trade opportunities, and a stronger regional economy.
Lee Kinyanjui Cabinet Secretary for Investments, Trade & Industry, emphasised that liberation of African economies begins with removing financial barriers.
“KCB’s entry into PAPSS is a progressive move that will unlock new opportunities for businesses, traders, and entrepreneurs across the continent.”Lee Kinyanjui, Cabinet Secretary for Investments, Trade & Industry”
KCB’s integration with PAPSS is more than just a technological upgrade, it is a commitment to economic empowerment, financial inclusion, and seamless trade across Africa.
As the bank continues to expand its digital solutions, businesses of all sizes can now thrive in a borderless financial landscape, setting the stage for a new era of African economic growth.
With KCB leading the way, the future of cross-border payments in Africa has never looked more promising.
