KCB Group has signed a Pan-African Payment and Settlement System (PAPSS) to enhance cross-border trade and financial integration.
This means KCB customers will 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.
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.
KCB Group CEO, Paul Russo, says: “We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint.”
PAPSS CEO, Mike Ogbalu said: “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.”
“The liberation of the African economies will only be achieved when the balance of payment challenges within the continent are eliminated,” said Investments, Trade and Industry, Cabinet Secretary, Lee Kinyanjui.
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.
CBK, Banking & Payment Services Director, Michael Eganza said: “We are increasingly looking at reinvigorating the regulatory regime to promote innovation and deepen financial inclusion within the 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.