The Central Bank of Kenya (CBK) has successfully completed the migration of the Kenya Electronic Payment and Settlement System (KEPSS) to the ISO20022 Global Messaging Standard, a milestone in the modernization of Kenya’s National Payment System.
KEPSS, which is Kenya’s Real-Time Gross Settlement (RTGS) system, is operated by the CBK to process large-scale and time-critical payments, forming the backbone of domestic and regional transactions.
According to the CBK, the transition to ISO20022 provides key benefits, including faster settlement times, more streamlined processing, and improved liquidity management for financial institutions.
During the migration period, spanning from August 2023 to August 2024, KEPSS processed over 5.3 million transactions valued at Ksh.45 trillion in local currency.
ISO20022 is rapidly becoming the global standard for financial messaging, enhancing the complexity and security of payments.
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The standard’s rich data formats will support the monitoring and prevention of fraud and illicit transactions. Additionally, 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.
The successful adoption of ISO20022 places Kenya among a select group of countries and regions that have embraced the new messaging standard, reinforcing its position as a leading and competitive destination for financial services.
The transition also aligns with Kenya’s modernization efforts under the National Payments Strategy 2022-2025.
“The migration of KEPSS to ISO20022 Standard is a significant achievement that showcases Kenya’s commitment to adopting international best practices in financial messaging,” said CBK in the statement.
“This milestone will greatly enhance the convenience, speed, and security of payments for corporates and customers alike.”
CBK has directed banks and other financial institutions to inform customers and provide support to ensure a seamless transition to the new system.
The shift to ISO20022 is expected to further Kenya’s long-term goal of becoming a global financial hub.
