(NAIROBI) – The Central Bank of South Sudan (BoSS) and the Central Bank of Kenya (CBK) have agreed to enhance their bilateral cooperation by revising an earlier agreement signed in 2012. The updated agenda focuses on currency reform, banking regulation, digital payment systems and technical support in combating financial crimes.
At a meeting held in Nairobi on 1 August 2025, Governor Dr Addis Ababa Othow of South Sudan and Governor Dr Kamau Thugge of Kenya outlined a plan to modernise financial operations and build institutional capacity. The renewed partnership aims to strengthen South Sudan’s fragile financial system and promote cross-border economic stability.
The Central Bank of South Sudan has been under increasing pressure to address key monetary and structural issues, including inflation, currency depreciation, and limited access to financial services. South Sudan’s pound currently trades at around 4,600 per US dollar, highlighting the importance of currency reform. A single South Sudanese Pound (SSP) is now worth approximately $0.000217 at official exchange rates as of July 2025.
Both central banks agreed to share technical expertise, particularly in anti-money laundering and counter-terrorism financing (AML/CFT), two areas that have drawn international scrutiny. The new cooperation framework is also expected to improve supervision of banking institutions and accelerate the development of digital financial services, which remain underdeveloped in South Sudan.
Dr Othow described the initiative as a strategic step forward.
“Technical support in currency reform, banking supervision, digital payments, and AML/CFT is essential to strengthening our financial system,” he said following the meeting.
A technical needs assessment will be conducted in the coming weeks to determine specific areas of assistance. This assessment will also establish timelines and performance indicators for implementing the revised agreement.
The meeting was attended by senior officials from both countries. From South Sudan, David Manyuon Nak, Director General for Administration and Human Resources at BoSS, participated. Kenya was represented by Prof Robert Mudida, Director of Research at the Central Bank of Kenya.
The partnership is part of a broader effort by South Sudan to stabilise its economy and attract investment. While the economy remains heavily reliant on oil exports, South Sudan’s central bank has been attempting to reform its monetary policy framework, improve transparency, and reduce dependency on cash based transactions.
Analysts view the collaboration with Kenya, a regional financial hub, as a step toward regional integration and knowledge transfer. Kenya’s experience in digital finance, particularly through mobile banking platforms like M-Pesa, is seen as a model that could offer important lessons for South Sudan, where financial inclusion remains low.
The strengthened relationship between the two central banks is also in line with the East African Community’s (EAC) broader goals of harmonising financial systems and encouraging intra-regional trade. Though South Sudan joined the EAC in 2016, its financial sector remains the least developed among member states.
South Sudanese officials hope the renewed MoU will bring practical solutions to the country’s monetary challenges and help prepare institutions for broader economic reforms.
Key Areas of Cooperation
| Focus Area | Description |
|---|---|
| Currency Reform | Support in stabilising and revaluing the South Sudanese Pound |
| Banking Supervision | Capacity building in regulation, oversight, and compliance |
| Digital Payments | Development of systems for mobile and electronic transactions |
| AML/CFT | Assistance in monitoring and controlling illicit financial activities |