dLocal Secures Partnership with Kenyan Commercial Banking System

Infrastructure
25.06.2024 02:10 pm

dLocal, the leading cross-border payment platform specializing in high-growth markets, has finalized a partnership agreement with the KCB Group, the commercial banking services handled by the Central Bank of Kenya, including inbound remittance services. The approval comes almost exactly one year after the country approved dLocal local entity for its first payment services license.

This expansion of dLocal’s group remittance offering into the Kenyan market highlights the untapped potential of Kenya’s status as a hub for financial and technological growth. The KCB’s approval of dLocal’s submission for a money remittances flow allows the free flow of money wire transfers through the country’s official banking system. The opportunity to work directly with the Kenyan Commercial Bank eliminates third-party involvement, making transactions cheaper, faster, and more reliable for dLocal clients.

The ability to send and receive payments through a trusted source results in a lower likelihood of mishandled finances, and there has been a strong demand for such services. Kenya is a key market for remittances and the country has seen the transfers hit a record $4B in 2023, equivalent to 3% of its GDP. The debut of dLocal’s remittance approval with KCB in Kenya bodes well for its broader expansion across Africa and comes after the company expanded its presence in Nigeria, Tanzania, South Africa, Rwanda, and Kenya (albeit with other licenses, approvals or partnerships almost a year ago).

“Securing licensing with Kenya is an exciting step for us. As the fifth largest inbound remittance market in Africa, many other markets look to Kenya when it comes to regulatory frameworks and offerings,” shares dLocal CRO John O’Brien. This new approval will provide a fast, streamlined, and reliable option to Kenyan consumers and paves the way for further growth for dLocal’s payout solutions.”