Central Banks of South Sudan and Kenya Revive Cooperation

(NAIROBI) – South Sudan and Kenya have agreed to renew and expand their cooperation in the financial sector, marking a fresh push to stabilise and modernise South Sudan’s banking system. The decision was made during a high level meeting between the governors of the two countries’ central banks in Nairobi on Thursday.

Dr. Addis Ababa Othow, Governor of the Bank of South Sudan, met with his Kenyan counterpart, Dr. Kamau Thugge, Governor of the Central Bank of Kenya, where they discussed ways to enhance bilateral collaboration.

The two governors committed to revising their existing Memorandum of Understanding, originally signed in 2012, to include new areas of focus that reflect recent financial challenges and opportunities.

Key areas to be included in the revised agreement are currency reform, banking supervision, digital payment systems and capacity building to combat money laundering and the financing of terrorism. These additions aim to support South Sudan’s ongoing efforts to strengthen its financial institutions and regulatory framework.

Dr. Othow emphasised the importance of the agreement, stating, “Technical support in currency reform, banking supervision, digital payments, and anti-money laundering is essential to strengthening our financial system.”

As part of the new agenda, a technical needs assessment is expected to be completed and shared in the coming weeks. This assessment will outline priority areas and propose timelines and benchmarks for implementation.

South Sudan’s financial sector has been under significant strain in recent years, including challenges related to inflation, exchange rate instability and limited access to formal banking services.

The meeting also involved other senior officials. David Manyuon Nak, Director General for Administration and Human Resources at the Bank of South Sudan, and Professor Robert Mudida, Director of Research at the Central Bank of Kenya, were present, further indicating the strategic nature of the engagement.

The cooperation signals optimism for deeper economic integration between South Sudan and its neighbours, as Juba continues to rebuild its economy and institutions after years of conflict.