Kenya, COMESA launches Digital Retail Payments Platform aimed to reduce transaction costs in the 21-nation bloc

The Common Market for Eastern and Southern Africa established a digital payments system on Thursday aimed at reducing transaction costs. The bloc said that the new system will allow businesses to settle deals in local currencies.

The 21-member bloc has joined efforts by the African continent to promote local currency payment systems, aiming to reduce trade costs by eliminating the need to convert local currencies into other currencies for cross-border transactions. COMESA announced that the new Digital Retail Payments Platform will commence with trials between Malawi and Zambia.

COMESA seeks to cut trade costs with a new payment system

The bloc also revealed that the new digital payment system is being rolled out in partnership with two digital financial services providers and a foreign exchange provider. COMESA didn’t specify the names of the partners.

Kenya’s trade minister, Lee Kinyanjui, acknowledged that the initiative is aimed at assisting medium, small, and micro enterprises. He revealed that these enterprises account for 8% of businesses and 60% of employment in member states, but must deal with insecure and expensive cross-border payment systems.

Kinyanjui also maintained that the payments platform will aim to keep costs under 3% of the transaction value. Kenya’s President William Ruto, who took over the chairmanship of COMESA from Burundi’s President Evariste Ndayishime, has called for increased integration to boost trade on the continent.

Ruto revealed that Kenya has increased its shareholding in regional trade finance banks, including TDB by $100 million and Afreximbank by $50 million. He said the initiative shows Kenya’s commitment to deepening trade integration. The President also argued that strengthening local multilateral financial institutions is one of the most viable pathways for Africa and for regional economic blocs, such as COMESA.

COMESA launches the electronic Certificate of Origin

Last week, Kenya and the COMESA Secretariat launched the bloc’s electronic Certificate of Origin in Nairobi, which replaced the paper-based origin certification with a digital system. The bloc stated that the initiative aims to expedite border clearance, curb fraud, and align the region with the Digital Free Trade Area. The new certification is already being adopted by Eswatini, Zambia, and Malawi, as of August 1, 2025. Zimbabwe, which had previously stopped accepting paper certificates altogether, is also expected to adopt it.

The World Bank’s ‘Trading Across Borders’ metrics revealed that a standard Kenyan export shipment usually takes around 19 hours of documentary compliance and 16 hours of border compliance. There are also out-of-pocket costs of around $191 for documentary compliance and $143 for border compliance, as of the last published benchmark. The report also showed that some Sub-Saharan countries face worse conditions, with some ports having more than 200 hours of border formalities.

The WTO estimated that the full implementation of trade-facilitation initiatives can lower trade costs by an average of 14.3%, with developing economies experiencing the largest proportional gains. Afreximbank and the AU are already wiring payments through the Pan-African Payments and Settlement system, which links around 16 central banks and over 140 banks as of mid-2025.

Timothy Were, director of ICT at the Ministry of Industry, acknowledged that the launch of eCO reaffirms Kenya’s commitment to making trade more efficient, transparent, and inclusive for all. The Director of Trade and Customs at COMESA said the initiative is a clear demonstration of Kenya’s commitment to promoting efficiency, competitiveness, transparency, and trust in regional trade.

Exporters utilise the Certificate of Origin to access trade benefits under regional agreements, including the COMESA, the East African Community (EAC), and the African Continental Free Trade Area (AfCFTA). The certification was previously manual, which required physical applications, printed certificates, and in-person verifications.

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