Kenya adopts a new regional payment system
The Central Bank of Kenya (CBK) has launched the East African Cross Border Payment System (EAPS) in a bid to reduce transaction costs between Kenya, Uganda and Tanzania.The Central Bank of Kenya (CBK) has launched the East African Cross Border Payment System (EAPS) in a bid to reduce transaction costs between Kenya, Uganda and Tanzania.
In a statement published by Xinhua news agency, the CBK said it had launched the cross-border payment system on Friday (16 May), in collaboration with the secretariat of the Monetary Affairs Committee (MAC) of the East African Community (EAC).
"The EAPS project is part of efforts to modernize payments in East Africa led by EAC's central bank governors, under the auspices of the Monetary Affairs Committee, to promote cross border payments in the EAC region," said the CBK.
This multi-currency platform will facilitate cross border payments and allow an efficient transfer of monetary values within the region. It will also significantly
the usual commercial bank charges on international trade transactions. It is expected to help develop the financial system and the overall economic growth in the region.
According to Louis Kasekende, the Deputy Governor Bank of Uganda, EAPS will make cross border payments easier and also facilitate safe and efficient transfer of monetary value within the region.
"This will ideally mean that if you needed to transfer money to a Kenyan supplier, you do not have to change from the Uganda shilling to the dollar then to the Kenya shilling in order to settle a cross border payment," he told East African Business Week a few months ago.