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Nairobi dominates Comesa cross-border bank transfers

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Nairobi dominates Comesa cross-border bank transfers

Nairobi dominates Comesa cross-border bank transfers
Photo credit: Nation Media Group

Nairobi dominates the real-time cross-border bank transfer system operated by the Common Market for Eastern and Southern Africa (Comesa) due to the high number of Kenyan firms operating in the bloc.

Kenya accounts for three-quarters of all funds moving through the platform dubbed Regional Payment and Settlement System (REPSS), according to fresh data from Comesa.

The Comesa payments system handled transfers totalling $11.5 million (Sh1.2 billion) and €0.84 million in the period between October 2015 and February 2016 – with payments originating from Kenya amounting to $9.3 million (Sh930 million) and €119,789.02 in the period under review.

Uganda trailed Kenya to transact $2.1 million (Sh210 million) and €0.7 million on the regional inter-bank window; while Mauritius moved €26,857.53 (Sh4 million) in the reporting period above.

Kenya plugged into the Comesa platform in 2014 and the system has so far interconnected banks in eight member countries including DR Congo, Malawi, Mauritius, Rwanda, Swaziland, Uganda, and Zambia.

“The cost effectiveness of REPSS payments translate into savings for the originator. It provides one easy process for making cross-border payments,” Comesa said in a statement.

The Comesa inter-bank system, launched in October 2012, works by connecting the national payment platforms of member countries, making it easy for companies with regional operations to move cash.

For example, Nairobi links to the network through the Kenya Electronic Payment and Settlement System (KEPSS), a real-time interbank platform hosted at the Central Bank of Kenya.

Transactions on the bloc’s system can be settled using members’ local currencies or any major foreign bills such as dollars and euros.

Kenyan banks, insurance companies and manufacturing firms have been expanding into the region.

Some Kenyan companies with a large footprint or do business within Comesa member countries include oil marketer KenolKobil, Kenya Re, UAP Old Mutual, Bamburi Cement and BOC Gases and several commercial banks.

In total, the Comesa platform has moved $10.6 million and €0.84 million since its founding to December 2015.

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