PAPSS bets on local currencies to unlock Kenya’s Africa trade
NAIROBI, Kenya, Nov 12 – Kenyan businesses trading with other African markets could cut cross-border payment costs and reduce their reliance on foreign currencies as the Pan-African Payment and Settlement…
Nairobi, Kenya, November 12 – The Pan-African Payment and Settlement System (PAPSS) aims to lower trade costs for African businesses by promoting local currencies, according to its CEO Mike Ogbalu. This infrastructure enables companies to settle transactions directly in participating African currencies, bypassing the US dollar as an intermediary.
By offsetting payments flowing in opposite directions, businesses can minimize reliance on foreign currencies and reduce transaction fees, often as low as 0.1 percent of transaction value. Kenya has been an early adopter, with financial institutions like KCB Group and Equity Bank connected to the network, but wider adoption among small and medium-sized enterprises remains a challenge.
PAPSS has seen more than a 1,000 percent growth in adoption year-over-year, though exact economic benefits for Kenyan businesses have yet to be fully quantified. The organization aims to expand to 37 countries by the end of 2026 and 50 by 2027, focusing on driving actual transaction volumes and business adoption as part of broader efforts to deepen intra-African trade.
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