NAIROBI, Feb. 27 (Xinhua) -- KCB Group, a major East African commercial bank, on Thursday became the first financial institution in Kenya to begin transactions on the Pan-African Payment and Settlement System (PAPSS) that was developed by the African Export-Import Bank.
Mike Ogbalu, chief executive officer of PAPSS, told journalists in the Kenyan capital of Nairobi that KCB Bank clients will now be able to send and receive money in local currency to partner banks across Africa almost instantly.
"KCB's successful boarding of PAPSS is a remarkable achievement that showcases its commitment to enhancing financial connectivity and supporting the implementation of the African Continental Free Trade Area (AfCFTA)," Ogbalu said.
He noted that PAPSS is expanding to 15 central banks, over 150 commercial banks, and 14 switches across Africa.
Paul Russo, chief executive officer of KCB Group, revealed that the PAPSS platform puts KCB, with a presence in seven East African countries, 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 on the continent.
Michael Eganza, director of banking and payment services at the Central Bank of Kenya, said PAPSS will deliver multiple advantages and efficiencies to intra-African trade payments, such as a decrease in the liquidity requirements of commercial banks for cross-border payments and the removal of transaction value limits.
Lee Kinyanjui, cabinet secretary in the Ministry of Investments, Trade and Industry, called on other Kenyan financial institutions to embrace the PAPSS platform as it is a key enabler of the African Union's goals of fostering economic integration and boosting intra-African trade.
