Kenyan lenders can now process cross-border payments at any hour of the day, with transactions settled in local currencies, following a tie-up between Pesalink and the Pan-African Payment and Settlement System.
The integration allows instant payments from PAPSS participants to flow directly into banks and mobile money providers connected to the Pesalink network in Kenya.
In a statement issued on February 26, Pesalink said the collaboration is designed to fast-track regional financial integration and simplify cross-border transactions.
Under the arrangement, payments are processed in real time and settled in local currencies, cutting out layers of correspondent banking and reducing dependence on hard currencies.
PAPSS, an initiative spearheaded by the African Export-Import Bank in partnership with the African Union and the AfCFTA Secretariat, facilitates payments between African countries through a unified settlement platform.
Pesalink has also taken on the role of Technical Connectivity Provider, linking its domestic payment infrastructure directly to PAPSS. As a result, more than 80 Kenyan banks, SACCOs, fintech firms and telecom operators on the Pesalink network are now connected to over 160 commercial banks and fintechs operating on PAPSS across the continent.
Pesalink Chief Executive Gituku Kirika said the move would enable Kenyan banks to provide quicker and more affordable cross-border payment options, empowering customers to deepen regional trade links within an increasingly digitised economy.
Also Read: Ruto Tells Housing Department To Construct 28,000 Housing Units For Prisons Officers
Cross-border transfers have long been expensive and sluggish for African businesses. A 2023 World Bank report showed that sending money across African borders costs between 7 and 8 per cent of the amount transferred, above the global average of 6 to 7 per cent, with settlement times stretching from three to seven working days.
The Pesalink-PAPSS partnership is positioned as a remedy to these bottlenecks, promising lower costs, faster settlement and improved efficiency for individuals, small enterprises and larger corporates.
PAPSS Chief Executive Mike Ogbalu III said meaningful impact depends on collaboration with national and private payment switches, noting that Pesalink is the first switch piloted for transaction termination in Kenya, with early signs pointing to stronger adoption and smoother local-currency payments across Africa.
