KCB has been appointed the official settlement bank for East Africa’s power trade, aligning finance with energy integration across 13 African countries.
Nairobi, Kenya — April 2025
In a bold step that links financial infrastructure to regional energy security, Kenya Commercial Bank (KCB) Group Plc has been appointed the official settlement bank for cross-border electricity trade in East Africa.
The announcement by the Eastern Africa Power Pool (EAPP) marks a significant milestone in efforts to create a unified regional electricity market, spanning 13 countries including Kenya, Uganda, Ethiopia, Sudan, Rwanda, and the Democratic Republic of Congo.
“This isn’t just about power. It’s about trust, transparency, and a scalable infrastructure,”
said Yohannes Gebreegziabher, EAPP Secretary General.
Talks around a centralized payment platform began in 2022 as regional utilities and energy ministries pushed to streamline $200 million+ in annual power trading, which had been bogged down by inconsistent bilateral deals and regulatory fragmentation.
KCB emerged the top choice in a competitive selection process that included regional and global banks. Key factors included:
- A footprint in seven East African countries
- A history of managing government and utility accounts
- Strong digital banking infrastructure and cybersecurity protocols
“East Africa’s energy integration needs a financial partner that understands both scale and nuance,”
said Paul Russo, CEO of KCB Group.
“We’re proud to be that bridge.”
Under the agreement, KCB will host and manage a Multi-Currency Settlement System (MCSS) tailored to EAPP’s power transactions. The MCSS will:
- Clear payments in Kenyan shillings, Ethiopian birr, and US dollars
- Reduce currency conversion risks and payment delays
- Improve liquidity for power utilities across the region
The platform is expected to go live in Q1 2026, after regulatory approvals and system testing.
According to the African Development Bank (AfDB), lack of coordinated payment systems has cost utilities nearly $500 million since 2018 through delayed settlements and unhedged currency exposure.
KCB’s new role strengthens both financial and geopolitical integration in East Africa. The development aligns with key continental frameworks such as:
“This could transform access to electricity in post-conflict areas like South Sudan and eastern DRC,”
said Dr. Annet Nankunda, power economist at Makerere University.
Moreover, as the EAPP incorporates green energy corridors like Lake Turkana (Kenya) and Simien Mountains (Ethiopia), this initiative will also help advance the region’s renewable energy transition.
KCB will collaborate with regional central banks and regulators to finalize clearing agreements by December 2025.
Analysts say this move could unlock long-term capital for grid infrastructure and clean energy investments across East Africa.
“This signals financial stability and operational structure—key for investor confidence,”
noted George Bodo, a Nairobi-based banking analyst.
On the back of the announcement, KCB shares rose 2.6% on the Nairobi Securities Exchange (NSE), reflecting bullish sentiment on the bank’s growing non-interest income streams and regional strategic positioning.
Conclusion: Powering a Financial-Energy Future
KCB’s appointment is more than a banking milestone. It’s a regional blueprint for how finance and infrastructure can work together to unlock Africa’s next phase of development.
By facilitating secure, real-time, multi-currency energy payments, KCB is enabling not just transactions—but transformation.
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