The Central Bank of Kenya (CBK) has announced that the Kenya Electronic Payment and Settlement System (KEPSS) has successfully transitioned to the ISO20022 Global Messaging Standard as of today. KEPSS, which serves as Kenya’s Real-Time Gross Settlement (RTGS) system, processes large-value and time-critical payments, and is vital to both domestic and regional payment transactions. Between August 2023 and August 2024, KEPSS handled over 5.3 million transactions valued at more than Ksh. 45 trillion for local currency payments.
ISO20022 is the latest global open standard for financial messaging, bringing significant improvements in faster settlement times, streamlined processing, and enhanced liquidity management for financial institutions. One of its key advantages is the use of rich data formats, which will aid in fraud monitoring and the detection and prevention of illicit transactions. Furthermore, the standardisation provided by ISO20022 reduces the complexity of payments, greatly improving efficiency and ensuring interoperability between domestic and international payment systems, facilitating easier cross-border transactions.
This shift to ISO20022 will enhance the convenience, speed, and security of payments, benefiting both corporate clients and individual customers. It marks a milestone in modernising Kenya’s National Payments System (NPS) and positions the country as a leading global payments destination.
The migration is part of CBK’s National Payments Strategy 2022-2025, which aims to align Kenya with global best practices in the financial sector. This transition follows other key initiatives by CBK, such as the migration of the Cheque Clearing House to the ISO20022 Standard. CBK has urged banks to inform their customers about the changes and provide necessary support to ensure a smooth transition.
CBK remains committed to continuous improvement and upgrading Kenya’s payments infrastructure to support the evolving needs of the economy, reinforcing the country’s goal of becoming a global financial hub.
