• The East African Community has approved a roadmap to modernize and unify payment systems across member states.
• The plan targets faster transactions, lower costs, and better access for people, businesses, and banks.
• High fees and poor interoperability remain major hurdles to efficient cross-border payments.

The East African Community (EAC) is taking new steps to make cross-border payments faster, safer, and more affordable across the region. From March 17 to 21, 2025, officials met in Mombasa, Kenya, to approve a roadmap for modernizing and connecting payment systems among member countries.

The new plan, known as the Cross-Border Payment Systems Master Plan, lays out a clear vision: simplify regulations, modernize infrastructure, and make sure individuals, businesses, and financial institutions all have equal access to payment systems—no matter where they are in the region.

It also includes updates to the existing East African Payment System (EAPS), aiming to reduce costs and make payments between countries quicker and easier. Other priorities include building local technical expertise and promoting financial literacy to support long-term improvements.

“By implementing the Masterplan, we are laying the groundwork for a financial ecosystem that is not only cost-effective but also inclusive,” said Michael Eganza, Chair of the Steering Committee and Director of Banking and Payment Services at the Central Bank of Kenya.

The need for change is clear. Sending money between East African countries is still expensive. On average, sending $200 from Tanzania to Kenya costs 35% in fees. The same transaction costs 30% in Uganda and 20% in Rwanda. That’s well above the global average of 12.5%, according to the IMF, as reported by The East African.

Despite ongoing efforts, challenges remain. National regulations are not aligned, which makes it hard to connect different systems. Many people are still left out of formal financial services, and consumer protection is weak. Slow processing times and high fees continue to make cross-border payments a headache for many.

Adoni Conrad Quenum