PAPSS Expands in Eastern Africa: KCB Group and Bank of Kigali Pioneer Cross-Border Payment Integration

The Pan-African Payment and Settlement System (PAPSS), developed by the African Export-Import Bank (Afreximbank) in partnership with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, has reached a major milestone in advancing financial integration across Africa. The system has now been officially launched by KCB Group in Kenya and Bank of Kigali in Rwanda, marking a significant step in streamlining cross-border payments within the continent.

The launches took place on February 26th in Kigali by the Bank of Kigali and February 27th in Nairobi by KCB Group, making them the first banks in their respective countries to integrate PAPSS into their operations. This move underscores their commitment to fostering intra-African trade and supporting AfCFTA’s vision of a more economically interconnected Africa.

With PAPSS now live in both banks, customers can send and receive cross-border payments seamlessly via mobile banking applications and branch networks. The system eliminates the need for correspondent banks or third-party currencies, ensuring faster, more cost-effective, and secure transactions across African borders.

A Game-Changer for African Trade and Financial Inclusion
Highlighting the impact of PAPSS, Mike Ogbalu III, CEO of PAPSS, emphasized the benefits for businesses and individuals:

“Customers will experience faster, more cost-effective, and secure cross-border transactions from their banks’ mobile applications or through branches. Businesses can now trade more competitively by eliminating reliance on correspondent banks outside the continent and reducing dependency on third-party currencies. This transformation will unlock new opportunities for trade and investment, empowering African SMEs and strengthening local economies.”
He expressed deep appreciation for KCB and Bank of Kigali’s leadership in adopting PAPSS, commending Paul Russo, CEO of KCB Group, and Dr. Diane Karusisi, CEO of Bank of Kigali, for their vision and commitment to financial innovation.

Since its pilot phase in 2022 within the West African Monetary Zone (WAMZ), PAPSS has expanded significantly, now integrating 15 central banks, over 150 commercial banks, and 14 switches. Ogbalu III described the launch in Kenya and Rwanda as a “significant step” toward connecting the entire continent and enhancing intra-African trade, which currently accounts for just 16% of Africa’s total trade.

Leaders’ Perspectives on the Launch
Paul Russo, CEO of KCB Group, reinforced the bank’s commitment to driving economic growth through digital payments:

“We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint. Our entry into PAPSS aligns perfectly with our strategy of supporting economic growth in Kenya and across Africa by facilitating seamless financial transactions.”
Dr. Diane Karusisi, CEO of Bank of Kigali, highlighted the system’s efficiency and reliability for businesses and individuals:

“This system allows people to send money quickly. For example, if someone sends Rwandan francs from Rwanda, it can reach Ghana in their local currency. The system converts the currency to meet local requirements. Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable.”
Expanding PAPSS Across Eastern Africa
The launch of PAPSS in Kenya and Rwanda marks a significant milestone in Africa’s financial integration journey, but Ogbalu III emphasized that there is still much work to be done. He called on other central and commercial banks in Eastern Africa to join the PAPSS network and support AfCFTA’s mission of building a more unified and prosperous Africa.

With this latest expansion, PAPSS continues to redefine cross-border payments in Africa, opening new avenues for trade, investment, and economic empowerment across the continent.