The competition for Kenya’s Sh541 billion remittance market is set to intensify with the entry of cross-border payment platform dLocal, which has partnered with KCB Group to launch operations in the country.
DLocal specializes in high-growth markets, and this move marks a significant milestone for the company. The partnership, which includes inbound remittance services, has been approved by the Central Bank of Kenya.
This development comes almost exactly one year after dLocal received approval for its first payment services license in Kenya. The collaboration with KCB Group is expected to enhance remittance services in the country, offering a more robust and efficient platform for cross-border transactions.
As competition in the remittance market heats up, this partnership aims to provide better services and options for Kenyans, potentially driving further growth in the sector.
“This expansion into the Kenyan market underscores Kenya’s potential as a financial and technological hub,” the company said in a statement.
The approval of dLocal’s remittance services in partnership with KCB Group in Kenya marks a significant step for the company’s expansion across Africa. Kenya, being a key market for remittances with transfers reaching a record $4 billion in 2023 (Sh515 billion), equivalent to 3% of its GDP, presents a lucrative opportunity for dLocal.
The partnership allows dLocal to facilitate seamless wire transfers through KCB’s official banking system, eliminating third-party involvement. This direct integration aims to make transactions cheaper, faster, and more reliable for clients, meeting the strong demand for efficient remittance services in the region.
Following its expansion into Nigeria, Tanzania, South Africa, Rwanda, and now Kenya, dLocal’s entry into the Kenyan market is expected to strengthen its footprint across Africa, catering to the growing demand for cross-border payment solutions.
“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.”
