Stanbic launches direct RMB settlement service to boost China-Kenya trade

Stanbic Bank Kenya has launched direct renminbi, or RMB, settlement through China's Cross-Border Interbank Payment System, CIPS, a move set to speed up transactions and lower costs for cross-border trade.

Unveiled on Friday in Nairobi, the service positions Stanbic among the first banks in the continent to offer direct RMB settlement through CIPS, reducing dependence on traditional correspondent banking channels and giving businesses greater certainty when trading with Chinese partners.

Speaking during the launch, Jonathan Muga, head of corporate and investment banking at Stanbic Bank Kenya, said the initiative reflects the evolution of Kenya-China economic relations from infrastructure-led cooperation to a broader partnership encompassing manufacturing, technology, logistics and industrial development.

"China remains Kenya's largest trading partner and we continue to see growing opportunities for Kenyan businesses to export into the Chinese market," Muga said.

He noted that Chinese investment has helped transform Kenya's economy over the past two decades through large-scale infrastructure projects, manufacturing and other productive, job-creating sectors.

"As businesses expand across borders, they require financial partners that can provide local expertise, connectivity and efficient payment solutions. We see ourselves as that bridge between Chinese businesses and African markets," he added.

Muga said the bank, which operates in 19 African countries, intends to deepen collaboration with Chinese partners by supporting more trade, investment, infrastructure projects and supply chains across the continent.

The launch comes as China and Kenya continue to deepen commercial ties, with increasing numbers of Chinese firms investing in sectors ranging from manufacturing and logistics to renewable energy and digital technology.

Caleb Muriuki, a Stanbic transaction banking executive, emphasized that efficient financial infrastructure has become just as important as strong commercial relationships in driving international trade.

"From infrastructure to manufacturing, technology, logistics, wholesale trade, retail and renewable energy, Kenyan and Chinese businesses continue to drive investment, create jobs and strengthen economic ties between the two nations," Muriuki said.

He pointed out that direct connectivity to CIPS enables local businesses to settle RMB payments with Chinese suppliers, manufacturers, contractors and service providers more efficiently.

According to Muriuki, the platform significantly shortens payment processing times, with transactions completed within hours depending on time differences, while improving transparency, traceability and predictability.

"We now have direct access, giving us greater efficiency and predictability for RMB transactions. We have full visibility of transactions and can resolve issues much faster," he said.

He added that clients will not need to change their existing banking processes because Stanbic's digital and branch payment channels have already been configured to automatically route eligible RMB transactions through CIPS.

Muriuki said the new capability strengthens Stanbic's role as a financial bridge connecting Kenyan and Chinese businesses while leveraging the Standard Bank Group's extensive African footprint and international partnerships to support cross-border commerce.