Interledger Foundation & Kanzu Finance Partner to Revolutionize Cross-Border Payments in Africa
Nairobi, Kenya – Africa’s fintech ecosystem, the Interledger Foundation has announced a strategic partnership with Kenyan fintech pioneer Kanzu Finance to deploy next-generation payment infrastructure across the continent. The collaboration, backed by $15 million in initial funding, aims to create Africa’s first fully interoperable payment network connecting mobile money systems, cryptocurrencies, and traditional banking rails.
This partnership comes at a critical juncture as Africa’s cross-border payment volume is projected to reach $1.2 trillion by 2026. But how exactly will this technology work, which markets are being targeted first, and what does it mean for the average African business owner or consumer? Our investigation reveals the inside story behind this ambitious initiative.
The Interledger-Kanzu Payment Architecture
Three-Layer Technical Stack:
| Layer | Component | Innovation |
|---|---|---|
| Connect | ILP-enabled gateways | Links 19 African mobile money systems |
| Convert | Dynamic asset swap engine | Handles 14 fiat/crypto conversions in <3 sec |
| Settle | Hybrid blockchain ledger | Processes 5,000 TPS at 1/20th traditional cost |
Source: Technical whitepaper released April 2025
Phase 1 Rollout: Target Markets & Timelines
Initial Implementation (Q2-Q4 2025):
- Kenya: M-Pesa, Airtel Money, and 3 bank integrations
- Nigeria: Flutterwave, Opay, and NIBSS connection
- South Africa: SnapScan, BankservAfrica linkage
Key Features Going Live:
- Real-time Kenya-Nigeria remittances (3 sec, 0.8% fee)
- Merchant payment acceptance across 7 currencies
- Micropayment capabilities ($0.10 transactions viable)
The Financial Inclusion Impact
Projected Outcomes by 2026:
- 12 million unbanked Africans gaining payment access
- SME cross-border trade costs reduced by 62%
- $300M annual savings in diaspora remittance fees
“Farmers in Kakamega will soon receive payments from Dakar faster than they can walk to the local bank branch,” states Kanzu CEO Wairimu Kago.
Comparative Analysis: Old vs New System
| Metric | Traditional SWIFT | Interledger-Kanzu |
|---|---|---|
| Transfer Time | 2-5 days | 3-15 seconds |
| Average Cost | 7.2% | 1.1% |
| Success Rate | 83% | 99.6% |
| Accessibility | Bank accounts required | Mobile number sufficient |
Data: World Bank Payment Systems 2025 Report
Regulatory Considerations
The partnership has secured:
- Sandbox approval from CBK, CBN, and SARB
- Special dispensation for sub-$200 transactions
- FATF-compliant AML/KYC framework
Crucially, the system preserves user privacy through:
- Zero-balance payment channels
- Encrypted metadata handling
- On-demand compliance reporting only
To learn how your business can benefit from customized financial solutions, visit MUIAA Ltd. MUIAA offers expert guidance on funding opportunities both for personal and business. Contact us today for personalized support in meeting your business needs within Kenya’s evolving digital economy.
