Kenyan bank avails Chinese yuan to boost China-Kenya trade

Kenya's CFC Stanbic Bank on Wednesday became the first bank in the country to avail the Chinese currency, yuan, at its branches to facilitate trade between China and Kenya.

CFC Stanbic Bank Chief Executive Philip Odera told media that Kenyans trading with their Chinese counterparts often face obstacles in accessing the Chinese yuan, "Kenyans will now be able to freely access the RMB."

The trading facility aims to reduce financial intermediaries in the foreign currency trading. CFC Stanbic is a member of the Standard Bank Group which is 20 percent owned by the Industrial and Commercial Bank of China (ICBC).

Odera said this partnership between African and Chinese bank means that CFC Stanbic Bank has the capacity to deal directly with China. He noted that the importance of Chinese yuan keeps growing on a global scale in stature and value.

"The levels of Chinese investments in Kenya continue to rise and there is need to facilitate cross-border business between the two countries with a unique foreign currency proposition," he said.

Odera said the availability of the yuan currency at CfC Stanbic branches is expected to enhance business operations for Chinese enterprises as well as to ease access to funds for Chinese tourists coming into the country.

At present, Kenyans seeking to trade with China are required to acquire foreign currency such as the U.S. dollar which they then convert to the Chinese yuan.

"These increases the complexity and cost of trading with China," he said.

CFC Stanbic Bank plans to simplify Sino-Kenya trade by offering yuan currency directly without having to undergo multiple foreign currency transactions.

The CFC Stanbic, which has affiliates in 20 African countries also plans to launch direct payments between Kenya and Chinese bank accounts.

This service is already available in South Africa. Odera noted that direct bank transactions will eliminate the need for Kenyans to carry large amounts of cash when they go to China to source for goods.

Kenyan government data indicates that in 2014 and 2015, China was the East African nation's largest trading partner.

China has become a major destination for a range of African exports as well as an increasingly significant source of a wide range of manufactured goods imported by many African countries.

CfC Stanbic Bank is thus positioning itself to be the financial partner of choice for Chinese investors and Kenyans with business interests in the Asian country. Endit