Kenya has moved a step closer to seamless African trade integration after Pesalink partnered with Pan-African Payment and Settlement System (PAPSS) to unlock instant cross-border payments in local currencies. The strategic integration enables 24/7 bank-to-bank transfers across African borders directly into Kenyan banks and mobile money platforms, significantly reducing costs and settlement delays for individuals, SMEs and corporates.
Through this collaboration, more than 80 banks, fintechs, SACCOs and telcos connected to Pesalink can now transact with over 160 commercial banks and fintech institutions on the PAPSS platform. As a result, Kenyan financial institutions can process cross-border payments instantly without routing funds through foreign reserve currencies such as the US dollar. This shift simplifies transactions, improves liquidity management and strengthens regional trade flows.
Cross-border payments in Africa have remained costly and slow for years. The 2023 World Bank Remittance Prices report shows that sending money across African borders costs an average of 7–8 percent of the total value, which exceeds the global average. In many cases, settlement takes between three and seven business days. However, the Pesalink–PAPSS integration directly addresses these inefficiencies by lowering transaction fees and accelerating settlement cycles.
PAPSS, an initiative of the African Export-Import Bank in collaboration with the African Union and the AfCFTA Secretariat, was created to promote financial integration across the continent. By enabling local currency settlements, the system minimizes foreign exchange dependency and keeps more value within African economies. Consequently, businesses can trade across borders with greater certainty and reduced exposure to currency volatility.
During the partnership signing in Nairobi, PAPSS CEO Mike Ogbalu III emphasized that collaboration with national switches like Pesalink remains critical to delivering real impact. He noted that Pesalink became the first switch piloted for transaction termination in Kenya and confirmed that adoption is already increasing as more payment channels open across Africa.
Pesalink CEO Gituku Kirika stated that Kenyan banks can now offer faster and cheaper cross-border payment solutions to their customers. He added that the integration positions Kenyan businesses to build stronger regional trade relationships while thriving in a more interconnected digital economy.
Pesalink operates as Kenya’s interoperable instant payment network under Integrated Payment Services Limited and the Kenya Bankers Association. Since its establishment in 2015 under the National Payment System Act, it has evolved into a central pillar of Kenya’s real-time digital payments infrastructure. With this new partnership, Kenya strengthens its leadership in fintech innovation while advancing Africa’s broader financial integration goals under the African Continental Free Trade Area.
