East Africa Adopts Masterplan for Cross-Border Payments
The East African Community's new plan aims to let traders settle transactions in national currencies instead of US dollars.
Updated on Nov. 5, 2026 in International Trade
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The East African Community approved a masterplan in Mombasa, Kenya, on May 9, 2025, to modernise cross-border payments across the bloc. The plan builds on the existing East African Payment System, which connects Uganda, Kenya, Tanzania, and Rwanda.
Why it matters
Traders and individuals currently often carry US dollars or stagger payments, and cash transactions above US$10,000 attract handling charges. The initiative is intended to let transfers move across EAC borders without conversion into US dollars, with the aim of lowering the cost of doing business and deepening intra-EAC trade.
The masterplan contains 20 initiatives spanning regulatory harmonisation, infrastructure, financial inclusion, and institutional capacity building. Four of the eight EAC partner states are currently connected to the East African Payment System, leaving the remainder outside the existing network.
The players
East African Community
The EAC is a regional intergovernmental organisation of eight partner states in East Africa that works to deepen economic, political, and social integration across the bloc.
Kadaga
Kadaga is a Ugandan politician who informed Parliament about the masterplan.
The details
The masterplan provides for a regional instant retail-payment switch linking commercial banks, mobile-money wallets, and fintech platforms. Implementation begins with regulatory reforms and infrastructure upgrades over the first two years, followed by integration of national payment systems and operationalisation of the regional switch within three to five years.
Timeline
May 9, 2025: Masterplan approved in Mombasa, Kenya.
First two years: Regulatory reforms and infrastructure upgrades begin.
Three to five years: National payment systems integrated and regional switch operational.
Market Dynamics
The masterplan extends the existing East African Payment System, which currently connects Uganda, Kenya, Tanzania, and Rwanda, by targeting full regional integration. It seeks to shift cross-border trade away from reliance on US dollar conversion toward settlement in national currencies.
For traders moving money across East African borders, a working regional switch could reduce the need to hold US dollars or pay handling charges on large cash transactions. Benefits will depend on whether the DRC and South Sudan are integrated into the system.
The takeaway
Regional payment integration is a practical lever for lowering trade costs, but its benefits accrue fully only when all member states are connected. Watching how quickly the excluded countries join will show whether the plan's ambitions translate into real cross-border savings.
What happens next
Parliament is expected to take up legislative reforms, financing of digital infrastructure, and oversight of cybersecurity and consumer protection as implementation begins.
Further reading
For broader context on how regional payment integration shapes global commerce, explore International Trade coverage.
Source note: This article includes information reported by ChimpReports.
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