Kenya Links 240 African Banks for Instant Local Payments

Sending money across Africa just got faster and cheaper, thanks to Kenya joining a breakthrough payment system that's connecting the continent.

Kenya's Pesalink instant payment network has linked up with the Pan-African Payment and Settlement System (PAPSS), creating a direct connection between more than 240 financial institutions across Africa. The partnership means Kenyan banks and mobile money users can now receive money from other African countries in their own currency, without the usual delays and high costs.

For decades, sending money between African countries meant routing payments through banks in Europe or America, converting currencies multiple times, and waiting up to a week for the money to arrive. The World Bank reports these transfers cost Africans an average of 7% to 8% of every dollar sent, eating into the earnings of small business owners and families sending money home.

Now a business owner in Ghana can pay a supplier in Kenya directly, with the money arriving in minutes instead of days. The payment settles in local currency rather than having to convert through US dollars or euros, cutting out those expensive middleman fees and foreign exchange charges.

Pesalink already connects over 80 banks, credit unions, fintechs, and telecom companies inside Kenya. By joining PAPSS, which links more than 160 banks across multiple African countries, Kenya becomes the first East African nation to fully plug into this continent-wide instant payment system.

The timing matters. The African Continental Free Trade Area launched in 2021 to boost trade between African nations, but expensive, slow payments have held back growth. With cheaper, faster money transfers, small traders who couldn't afford high fees can now do business across borders.

The Ripple Effect

This connection does more than speed up payments. It keeps African money circulating within Africa instead of flowing through foreign banks that take a cut at every step.

Regional trade gets easier when a farmer in Rwanda can quickly pay for supplies from Kenya, or when workers send money home to family in neighboring countries without losing a week's groceries to fees. Those savings add up for the 1.3 billion people living across Africa's 54 countries.

The system also gives African banks a way to compete with mobile money apps and fintech startups that have been grabbing market share with faster person-to-person transfers. Banks can now offer the same speed while providing additional services like business accounts and trade financing.

Success depends on whether banks pass those cost savings to customers or pocket them as profit. But the infrastructure is now in place for instant, affordable payments across a continent where distance and borders have long meant expensive delays.

More African countries are expected to join the network throughout 2025, potentially creating the world's largest instant payment zone by population.