The Kenyan Government is among 22 countries that have opened Rupee Vostro accounts in Indian banks, opening the possibility for settling trade payments using local currencies.
India's Ministry of External Affairs (MEA) on Friday, July 21, confirmed that Kenya was part of the 22 countries that had opened the Rupee accounts as the Asian country expands its global influence.
The other countries include Belarus, Botswana, Fiji, Guyana, Israel, Malaysia, Mauritius, Myanmar, New Zealand, Oman and Russia.
Others are Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, Bangladesh, Maldives, Kazakhstan, and the United Kingdom
According to the Indian Government, the move will help the countries settle trade transactions in domestic currencies, promoting global trade growth.
The Indian Ministry of External Affairs also noted that the opening of the accounts would reduce dependency on hard currencies for businesses.
In the long run, Kenya and India will save their foreign exchange reserves.
Since taking over the office, President William Ruto has openly denounced the over-reliance on the dollar for international trade.
In May, the Head of State challenged African countries to drop the use of dollars and embrace local currencies.
“Although there has been the introduction of several regional payment infrastructures in the continent, we lack a single system that seamlessly facilitates trade among our nations, eliminating the obstacles posed by varying currencies," Ruto stated.
“It is imperative that we proactively seek a resolution to the disparities in currencies and the consequential impediments it poses."
India is one of the leading importers of Kenyan tea, while East Africa's largest economy imports machinery, medical supplies, and industrial chemicals among others.
