China and Kenya are stepping up their economic collaboration by increasing the use of the Chinese yuan (RMB) in bilateral trade and investment. As China’s foreign trade continues to expand, financial leaders and policymakers from both nations are actively exploring innovative ways to deepen financial integration, reduce transaction costs, and streamline cross-border payments.
Recently, more than 180 representatives from government agencies, financial institutions, and Chinese enterprises gathered in Nairobi for a high-level forum. Hosted by the Bank of China, the event served as the 11th stop of the institution’s 2026 global roadshow aimed at promoting the international use of the RMB.
Attendees focused heavily on how cross-border RMB payments, financing, and settlement mechanisms can make bilateral trade significantly easier for businesses on both sides. Yun Yi, deputy general manager of the clearing department at the Bank of China Head Office, emphasized the bank’s long-standing commitment to the region.
“Over the past 29 years, Bank of China has actively served as an all-weather financial partner for China-Africa cooperation, providing high-quality services to both Chinese enterprises doing business here and local clients, and continuously injecting strong and stable financial momentum into Africa’s economic and social development,” Yun noted.
As trade and investment between China and Kenya continue to flourish, improving the efficiency of capital flows and minimizing cross-border transaction costs have emerged as shared priorities.
Fidelis Muia, director of technical services at the Kenya Bankers Association, stressed the importance of financial institutions deepening their RMB cooperation. He also pointed to the necessity of strengthening connectivity with payment systems such as China’s Cross-Border Interbank Payment System (CIPS).
According to Muia, utilizing the RMB offers substantial practical advantages. For Kenyan businesses importing goods from China, as well as Chinese enterprises investing locally, efficient RMB settlement reduces transaction friction, enhances transparency, and grants greater flexibility in managing liquidity and foreign exchange. For local Kenyan banks, this shift presents a valuable commercial opportunity to build out capabilities in RMB payments, trade finance, and treasury services.
Kenya remains one of China’s most strategic economic partners in Africa. Bilateral cooperation has steadily evolved beyond traditional trade and infrastructure projects, branching into modern sectors such as digital technology, green development, and new energy. Furthermore, enhanced market access for Kenyan exports—including zero-tariff policies for selected goods—has set the stage for further trade growth.
Experts note that moving away from sole reliance on traditional settlement currencies offers a strategic cushion against market volatility. Huang Meibo, dean of the International Development Cooperation Academy at the Shanghai University of International Business and Economics, pointed out the limitations of relying exclusively on the U.S. dollar, citing high and fluctuating interest rates.
Ultimately, broader adoption of the RMB by Kenyan businesses and banks offers a viable alternative settlement currency, opening up fresh avenues for investment and financing. As Muia summarized, the integration allows local businesses to handle transactions and online orders seamlessly through domestic financial institutions, transforming how trade is conducted between the two nations.
