From left: Kenya's Prime Cabinet Secretary and the Cabinet Secretary, Ministry of Foreign Trade Musalia Mudavadi, President William Ruto, President of UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan, and UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi at the signing of the Kenya-UAE Comprehensive Economic Partnership Agreement (CEPA) in Abu Dhabi on Tuesday. (Source/President Wiliam Ruto)
The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Kenya (CBK) have signed two Memoranda of Understanding (MoUs) aimed at strengthening the use of local currencies in cross-border trade and enhancing the interlinking of payment and messaging systems.
The agreements, signed by H.E. Khaled Mohamed Balama, Governor of the CBUAE, and H.E. Dr. Kamau Thugge, Governor of the CBK, mark a significant step toward deepening financial cooperation between the two countries.
Under the first MoU, the two institutions will encourage the use of local currencies in settling commercial transactions.
The second MoU will see both banks cooperate on improving payment systems, including exploring opportunities for integrating instant payment networks and national card switches in line with regulatory standards.
H.E. Balama noted that the agreements reflect the strong economic relationship between the UAE and Kenya.
“The signing of these two MoUs reflects strong economic ties between the UAE and the Republic of Kenya. The use of local currencies in settling cross-border transactions, coupled with cooperation in linking instant payment systems, will broaden investment and commercial opportunities for both nations,” Balama said.
He added that the collaboration would pave the way for greater collaboration in the financial and banking sectors, and expressed optimism about working closely with Kenya to strengthen financial stability and achieve our mutual interests.
On his part, H.E. Dr. Thugge emphasized the historical ties between the two nations. “The economic and cultural links between Kenya and the United Arab Emirates go back many decades. Our two peoples have always traded between themselves, and this has only strengthened in recent years,” he said.
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He expressed confidence that the MoUs would further cement these ties, and ensure that our two countries forge ever-closer links in the financial and banking sectors in a scalable and sustainable manner.
The initiative is expected to lower transaction costs, improve cross-border payment efficiency, and accelerate financial innovation.
“the interlinking of our two countries’ payment system will yield tangible benefits for both our citizens and investors in the two countries.” Dr Thugge pointed out.
