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Top Kenyan banks are moving to reduce their reliance on the global SWIFT financial messaging system by embracing alternative cross-border payment systems.
Stanbic Bank Kenya is set to join China’s Cross-Border Interbank Payment System (CIPS) by 2025.
The move that will enable the bank to clear and settle yuan-denominated transactions directly without depending on offshore intermediary banks.
At the same time, major lenders including KCB Group, Equity Bank, and Stanbic have signed up for the Pan-African Payment and Settlement System (PAPSS).
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The system, developed under the African Continental Free Trade Area (AfCFTA), allows for real-time payments between African countries using local currencies sidestepping the US dollar and SWIFT.
The adoption of these platforms is expected to enhance trade efficiency, lower transaction costs, and reduce currency conversion risks, especially in intra-African trade and transactions involving China, Kenya’s leading trading partner
