The integration of PesaLink (operated by Integrated Payment Services Limited – IPSL under the Kenya Bankers Association) with the Pan-African Payment and Settlement System (PAPSS) changes that equation by connecting Kenya’s national banking infrastructure directly to the rest of the continent.
Here is what the partnership delivers for everyday Kenyan users and local businesses:
1. Pay and receive in Kenya Shillings (KES)
Historically, to pay a supplier in Ghana, Nigeria, or Egypt, Kenyans had to buy US Dollars or Euros first. This left businesses vulnerable to dollar shortages and double foreign-exchange conversion fees. Under PAPSS, you pay in Kenyan Shillings (KES) from your account, and the recipient receives the funds in their own domestic currency.
2. Instant transfers
Cross-border bank wires traditionally took 3 to 7 business days to clear due to intermediary correspondent banks in Europe or the US. Because PesaLink is integrated as a real-time termination switch, cross-border transfers into Kenyan bank accounts, SACCOs, microfinance accounts, and mobile wallets now process instantly, 24/7.
3. Lower costs
According to World Bank data, sending money across African borders costs an average of 7% to 8% of the transaction value. Eliminating offshore correspondent banks and third-party currency routing lowers transaction fees, helping individuals and traders keep more of their capital.
4. No need for new apps
Kenyans do not need to download a new app or register for a separate international service. PesaLink connects over 80 Kenyan financial institutions, including commercial banks, SACCOs, fintechs, and telcos, meaning users can initiate or receive cross-border transfers directly through their existing mobile banking apps, internet banking portals, or USSD codes (*225# or bank-specific codes).
Practical use cases for Kenyans
- SMEs and Import/Export Traders: A merchant in Eastleigh or Nyamakima buying goods from West or Southern Africa can settle invoices immediately without needing a foreign currency account or waiting days for bank clearance.
- Freelancers and Service Providers: Kenyan digital professionals, consultants, and agencies working for clients across Africa can get paid directly into their local bank accounts or mobile wallets without hefty transfer fees.
- Cross-Border Remittances: Kenyans living or studying in other African countries can receive funds instantly from family members at home without loss to currency conversion markups.
- SACCO Members: Because major Kenyan SACCOs are integrated into PesaLink, SACCO members gain direct access to intra-African cross-border payments without needing a traditional tier-1 commercial bank account.