’Kargo Pay’ revolutionizing payment methods for Rwandan businesses in cross-border trade

By Esther Muhozi
On 23 February 2024 at 09:07

Rwandan businesses engaged in cross-border trade transporting their goods through the Mombasa port in Kenya have been introduced to a digital payment system called ’Kargo Pay’. This system is designed to simplify their transactions at any time.

Rwandan businesses involved in cross-border trade through Kenya’s Mombasa port now have access to a groundbreaking digital payment system called ’Kargo Pay’. This system aims to streamline transactions and enhance convenience for traders.

Initially launched by the Kenya Ports Authority (KPA) in August 2023 for local traders, ’Kargo Pay’ has now been extended to international traders utilizing Kenyan ports. Recently, on February 19, 2024, Rwandan traders in Kigali were introduced to the system during a two-day event where its functionality was demonstrated.

Traders using the Mombasa port previously encountered several challenges, including the inability to make digital payments and the need to exchange currency, resulting in significant time delays. ’Kargo Pay’ addresses these issues by enabling direct payments from bank accounts or bank cards and facilitating currency conversion to dollars for international transactions. Additionally, the system supports mobile money and other digital payment options, such as ’eKash’, providing traders with flexibility and convenience round the clock.

Capt. William Kipkemboi Ruto, Managing Director of KPA, highlighted that ’Kargo Pay’ is part of a broader effort to facilitate trade and enhance cooperation among countries. He emphasized KPA’s commitment to fostering partnerships and mutual growth in business operations. Moreover, he announced the allocation of land by the Kenyan government to Rwanda in the Naivasha Industrial Park for constructing warehouses, aimed at expediting the transport of goods to Rwanda through digital payment mechanisms.

Godfrey K Twahirwa, responsible for the cement distribution chain at Prime Cement, lauded the technology for reducing payment processing time and expediting the shipment of goods. He highlighted the convenience of making payments from anywhere using a computer or phone, eliminating the need for physical presence or intermediaries in Kenya.

Dennis Olola, head of digital banking at BPR Bank Rwanda Plc, emphasized the bank’s unique position as a ’Kargo Pay’ account holder and its collaboration with KPA. He stated that this technology would benefit Rwandans and the bank’s clients involved in cross-border trade through Kenyan ports by enabling faster payments and contributing to their development.

The availability of ’Kargo Pay’ in Kenya through KCB Bank Kenya Ltd and in Uganda through KCB Bank Uganda Ltd, both part of the KCB Group which acquired BPR Bank, underscores the group’s commitment to leveraging technology for the benefit of its clients. This development aligns with BPR bank’s mission of serving the best interests of the people and businesses engaged in importing or exporting goods through Kenyan ports.

Capt. William Kipkemboi Ruto, the Managing Director of KPA, emphasized that the technology is part of efforts to facilitate and expedite trade and cooperation among countries.
Godfrey K Twahirwa, Operations and Logistics Manager at Prime Cement, praised the technology for reducing the waiting time for payment processing and thus speeding up the shipment of goods.
Cross border traders have been taken through advantages of 'Kargo Pay’.