Stanbic Bank Kenya has started processing Renminbi (RMB) transactions through China’s Cross-Border Interbank Payment System (CIPS), enabling Kenyan businesses to make direct RMB payments when trading with China.
The new capability gives Stanbic Bank Kenya customers access to China’s wholesale payment infrastructure approved by the People’s Bank of China for cross-border Renminbi clearing and settlement.
The launch comes as Standard Bank Group surpasses CNY 8 billion (about US$1.2 billion) in transactions processed through CIPS, expanding its role in facilitating trade payments between Africa and China.
Through the CIPS connection, businesses can process RMB payments with improved visibility and traceability, faster settlement timelines, and reduced dependence on traditional correspondent banking routes.
Stanbic Bank Kenya Strengthens Kenya-China Trade Payments
China remains Kenya’s largest trading partner, with businesses across sectors importing goods, machinery, electronics, and other products from Chinese suppliers.
Stanbic Bank Kenya said the RMB payment capability will support companies seeking more efficient ways to transact with Chinese partners by allowing payments to move directly through the RMB clearing system.
“China remains Kenya’s largest trading partner, and we continue to see growing trade and investment between our two countries. As businesses increasingly seek faster, more transparent and efficient ways to transact, our ability to process RMB payments through CIPS represents a significant milestone in strengthening the Kenya-China trade corridor,” said Jonathan Muga, Head Corporate and Investment Banking at Stanbic Bank Kenya.
“By leveraging Standard Bank Group’s proven CIPS capability, which has already processed more than CNY 8 billion in transaction value, we are enabling our clients to trade with greater speed, efficiency and confidence,” he added.
The announcement was made during Stanbic Bank Kenya’s 2026 China Day, an event that brought together Chinese investors, business leaders, diplomats, and trade partners to discuss Kenya-China economic cooperation and emerging business opportunities.
How RMB Payments through CIPS Help Kenyan Businesses
- Lower Currency Conversion Costs
Direct RMB payments reduce the need for multiple currency conversions. Before, an importer could convert Kenya shillings into US dollars and the Chinese supplier would then convert the dollars into RMB, resulting in currency conversion costs at both stages.
The new payment route allows businesses to transact directly in RMB, reducing the number of currency conversions required when purchasing from Chinese suppliers.
- Improved Pricing for Imports From China
Chinese suppliers often manage currency risks when receiving payments in foreign currencies. By allowing Kenyan businesses to pay directly in RMB, importers can transact in the currency used by their suppliers, helping remove additional currency risk considerations during trade negotiations.
This applies to businesses importing goods such as electronics, clothing, spare parts, machinery, and other products sourced from China.
- Faster Payment Processing for Chinese Suppliers
Traditional international payments may pass through correspondent banking networks before reaching Chinese suppliers, adding additional processing steps. Through CIPS, RMB payments are routed through China’s dedicated cross-border RMB payment infrastructure, supporting faster settlement and improved payment tracking.
For Kenyan businesses, quicker payment confirmation can help suppliers begin production and shipping processes sooner.
- Reduced Exposure to US Dollar Availability Challenges
Many businesses involved in international trade rely on US dollar availability to complete import payments. Direct RMB settlement provides an alternative payment route for businesses trading with China, allowing them to transact without depending entirely on US dollar liquidity for China-related payments.
Businesses That Can Benefit From RMB Payments
The new Stanbic Bank Kenya RMB payment capability is relevant for businesses involved in China-Kenya trade, including:
- Clothing and electronics traders: Importers sourcing products such as apparel, phones, accessories, and spare parts from Chinese markets including Guangzhou and Yiwu.
- Machinery buyers: Businesses purchasing industrial equipment and manufacturing machinery directly from Chinese suppliers.
- E-commerce sellers: Online businesses sourcing inventory from Chinese platforms and suppliers.
- Small and medium enterprises: Businesses seeking more efficient ways to pay Chinese suppliers.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.