KCB Group and Bank of Kigali have become the first banks in Kenya and Rwanda to integrate the Pan-African Payment and Settlement System (PAPSS), a financial platform designed to simplify and reduce the cost of cross-border transactions within Africa. The system, developed by African Export-Import Bank (Afreximbank) alongside the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, aims to support intra-African trade while enhancing economic connectivity on the continent.
The official launches of PAPSS took place in Kigali, Rwanda, on February 26 and in Nairobi, Kenya, on February 27. With this integration, customers of both banks can now send and receive cross-border payments directly through their mobile apps or at bank branches, eliminating the need for correspondent banks or third-party currencies. These changes mean faster, more affordable transactions for businesses and individual users alike.
“The customers will experience faster, more cost-effective, and secure cross-border transactions from the comfort of their banks’ mobile applications or through their branches,” said Mike Ogbalu III, CEO of PAPSS. “Businesses can trade more freely and competitively by eliminating the need for correspondent banks outside the continent and removing dependencies on third-party currencies. This transformation is set to unlock new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.”
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PAPSS, initially piloted in the West African Monetary Zone (WAMZ) in 2022, connects 15 central banks, over 150 commercial banks, and 14 switches within its network. The platform’s expansion to Kenya and Rwanda signals its first significant presence in East Africa. According to Mr. Ogbalu, the progress signifies a vital step in boosting financial integration across Africa. “This expansion marks a significant stride toward our goal of connecting the entire continent, ensuring that every African citizen can benefit from seamless, cost-effective cross-border transactions,” he said.
One of the pressing challenges confronting African trade is limited intra-regional exchange, with only 16% of total commerce taking place between African states. PAPSS is considered pivotal in addressing this gap by facilitating streamlined payments across nations. Mr. Ogbalu stressed the broader implications of the platform, stating, “With only 16 per cent of Africa’s total trade occurring intra-regionally, the launch of PAPSS in Kenya and Rwanda is a significant step in unlocking the continent’s potential. We believe that this innovative financial market infrastructure will facilitate greater trade opportunities, economic growth, and financial empowerment between the Eastern African countries and the rest of Africa.”
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KCB Group CEO Paul Russo highlighted his institution’s intent to play a leadership role in transforming African financial systems. “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,” he explained.
Meanwhile, Bank of Kigali CEO Dr. Diane Karusisi elaborated on how the system would enhance convenience and reduce barriers in cross-border transactions. “This system allows people to send money quickly. For example, if someone sends Rwandan francs from Rwanda, it can reach Ghana in their local currency. The system converts the currency to meet the local requirements. Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable,” said Dr. Karusisi.
KCB Group and Bank of Kigali are encouraging other banks in Eastern Africa to adopt PAPSS to help drive the financial integration goals of AfCFTA and create a cohesive economic framework for the region. Mr. Ogbalu expressed optimism that growing participation in the platform would lead to increased prosperity across Africa. “We call upon other central and commercial banks in Eastern Africa to join the PAPSS family in order to play a pivotal role in the AfCFTA as it works to build a more prosperous and unified Africa,” he stated.
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The successful launch of PAPSS in Kenya and Rwanda marks what supporters view as a crucial development in promoting Africa’s financial independence and enabling the realization of the AfCFTA’s trade potential. By uniting countries through an efficient payment system, banks like KCB Group and Bank of Kigali are laying the groundwork for a more integrated and economically dynamic continent.
