The Central Bank of Kenya (CBK) has extended time for Kenya’s bulk payment settlement system, better known as the Kenya Electronic Payment and Settlement System (KEPSS).
It has increased the timing to enable completion of large-value and time-sensitive transactions effective July 1, 2025.
The move by the CBK mirrors the budget speech by National Treasury Cabinet Secretary John Mbadi, even as Kenya pushes for a fully digital economy.
“CBK is undertaking a comprehensive review of national payment system and implementing a first payment system that seeks to address persistent challenges in interoperability, affordability and the high cost of digital transactions,” said Mbadi when he appeared before the Members of Parliament for the Ksh.4.2 trillion budget reading.
The improved interoperability between domestic and international payment systems is expected to facilitate smoother cross-border transactions, ultimately increasing the ease of doing business globally.
What is KEPSS
KEPSS is what the CBK uses to run Real-Time Gross Settlement in the country, and it acts like a financial highway that processes high-value and time-sensitive payments both domestically and across borders.
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Between August 2023 and August 2024, KEPSS handled over 5.3 million transactions, totaling more than Ksh.45 trillion in local currency alone.
Kenya is well-positioned to handle the growing volume and complexity of transactions with the new schedule now running from 7:00 a.m. to 7:00 p.m. on business days, except for public holidays and weekends, pushing the service to a continuous 24/7 operation.
According to the CBK, the upgrade is supported by the system’s recent ISO 20022 Global Messaging Standard certification in late 2024, positioning Kenya to meet global financial standards and enhance cross-border payment efficiency.
“Businesses, government institutions, and financial entities will enjoy greater flexibility to process payments, improving cash flow management and reducing end-of-day settlement risks,” said CBK in a statement.
The standard’s rich data formats supports the monitoring and prevention of fraud and illicit transactions.
This extended access bridges the gap between traditional banking hours and the demands of a modern economy, facilitating seamless transactions across time zones and boosting Kenya’s competitiveness in the global market.
