The competition for a chunk of Kenya’s Sh541billion remittance is set to intensify after cross-border payment platform DLocal taped KCB Group to launch operations in the country.
DLocal, is a platform that specialises in high-growth markets, and the approval comes one year after the country approved its local entity for its first payment services license.
The partnership, approved by the Central Bank of Kenya, includes inbound remittance services and marks a significant milestone for dLocal, coming almost exactly one year after the country approved its local entity for the first payment services license.
“This expansion into the Kenyan market underscores Kenya's potential as a financial and technological hub,” the company said in a statement.
Kenya is a key market for remittances and the country has seen the transfers hit a record $4B in 2023 (Sh515billion), equivalent to 3 per cent of its GDP.
The company said, 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.
KCB's approval of dLocal's submission for money remittance flow facilitates seamless wire transfers through the country's official banking system.
By working directly with the Kenyan Commercial Bank, says it will eliminate third-party involvement, making transactions cheaper, faster, and more reliable for its clients.
The ability to send and receive payments through a trusted source reduces the likelihood of mishandled finances, addressing a strong demand for such services.
The debut of dLocal’s remittance approval with KCB in Kenya bodes well for its broader expansion across Africa, following its presence in Nigeria, Tanzania, South Africa, and Rwanda.
"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 for regulatory frameworks and offerings," said 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."
