CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
OFFICIAL LAUNCH OF THE EAST AFRICAN COMMUNITY
PAYMENTS AND SETTLEMENT SYSTEMS INTEGRATION PROJECT
(EAC-PSSIP)
Arusha, Tanzania
Monday, March 10, 2014

Amb. Dr. Richard Sezibera, Secretary General, East African
Community;
Dr. Enos Bukuku, Deputy Secretary General, Planning and
Infrastructure East African Community;
Prof. Benno Ndulu, Governor, Bank of Tanzania;
Prof. Emmanuel Tumusiime-Mutebile, Governor, Bank of
Uganda;
Mr. Jean Ciza, Governor, Bank of the Republic of Burundi;
Hon. John Rwangombwa, Governor, National Bank of Rwanda;
Mr. Jacob Mukete, African Development Bank Representative;
Distinguished Guests;
Ladies and Gentlemen:
It is my great pleasure and honor to join you this morning at the official
launch of the East African Community Payment and Settlement System
Integration Project (EAC PSSIP) which is a project under the EAC Financial
Sector Development and Regional Project Phase I.
Before I proceed with my remarks, let me observe that the EAC Partner
States have undertaken significant payment systems initiatives to support
regional integration. Under the Monetary Affairs Committee (MAC) the
partner states have achieved the following:
Harmonization of payment system standards in the region
Harmonization of legal and regulatory frameworks
Implementation of basic infrastructure (RTGS) and adoption of SWIFT
message standards
Recently we have implemented the East African Payment System
(EAPS) which went live in November 2013 after several months of
piloting. This system enhances cross border payments systems across
the EAC region and enables the public to pay as well as receive
payments on real time basis and in local currencies.

I note with appreciation that the EAC PSSIP is one of the many payment
systems initiatives aimed at supporting regional integration. This is an
important project in light of the proposed East African Monetary Union.
You will recall that last year the East African Monetary Union Protocol was
signed thus setting the road towards a single currency in the EAC region
and eventually a monetary union. This marked yet another milestone
towards regional integration.
The purpose of the Payment and Settlement project is to modernize,
harmonize and create a regional integration of payments and settlement
systems aimed at:
Enhancing convergence and regional integration of payment and
settlement systems
Strengthening a harmonized legislative and regulatory financial sector
Building capacities in the partner states
This project that has been supported by AfDB requires partner state central
banks to:
Submit a commitment letter jointly signed by all the Central Bank
Governors of the respective Partner States endorsing the Project
Sign an implementation agreement between EAC and the Partner state
central banks
Establish a Project Steering Committee
Constitute National Core Project Teams
These conditions were met by all the partner state central banks and the
project appraisal report presented to the AfDB Board of Directors. The
PSSIP was approved by AfDB for a grant amounting to USD23 million.
What is our Role as EAC Member States?
1. The first objective by the EAC member states is to deliver the project.
Once finalised it will confer the following benefits:

Enhancement of regional integration of payments and settlement
systems
Development of a harmonised legislative and regulatory framework
for the financial sector
Building of capacities in the partner states for payments and
settlement systems and effective financial development
2. The role of the partner state central banks is to ensure there is
transparency in the use of the funds provided by AfDB. The use of the
funds will therefore be monitored through the Project Steering
Committee and the National Core Teams which have already been
constituted by the central banks
3. The central banks will also be expected to come up with a work-plan
detailing the activities to be funded under the Project
Finally, I wish to thank EAC, and the AfDB who have supported this project.
Without their financial support this project would not have become a reality
today.
Thank you