NAIROBI, Sept. 14 (Xinhua) -- The Kenya Bankers Association (KBA) said Wednesday that growing Sino-Kenya trade is driving the uptake of the Chinese currency yuan among financial institutions.

Habil Olaka, Chief Executive Officer (CEO) of KBA, told Xinhua in Nairobi, the capital of Kenya, that the use of yuan will help reduce the transaction cost of trade between Kenya and China.

"As Kenya-China business grows, banks are becoming more aware of the opportunities of using Chinese yuan," Olaka said on the sidelines of the KBA banking research conference.

He said that China is now the leading source of imports for the east African nation and is also a growing destination for Kenyan exports.

The KBA official revealed that banks have traditionally relied on the U.S. dollar to settle financial transactions between Kenya and China, adding that the Chinese yuan provides a viable foreign currency to settle transactions between the two countries.

The growing Chinese role in infrastructure projects and local manufacturing has also attracted local banks to open Chinese desks in order to serve their increasing clientele from the Asian nation, Olaka noted.