The Central Bank of Kenya (CBK) has successfully transitioned the Kenya Electronic Payment and Settlement System (KEPSS) to the ISO20022 Global Messaging Standard. This migration positions Kenya as a competitive destination for large-value payment systems, aligning with global financial messaging standards. The ISO20022 Standard is designed to enhance the efficiency and security of financial transactions, making it a critical upgrade for Kenya’s payment infrastructure.
With the adoption of the ISO20022 Standard, Kenyans will benefit from improved services, particularly in large-value cross-border transactions. The new data format aims to address existing challenges in the payment system by providing richer data that aids in fraud monitoring and detection. This advancement is expected to streamline the payment process, reducing complexity while increasing efficiency for both consumers and businesses.
The enhanced interoperability between local and international payment systems is another significant benefit of the migration, facilitating easier cross-border transactions. This aligns with the National Payments Strategy 2022-2025, emphasizing the importance of modernizing Kenya’s National Payment Systems (NPS) to meet the evolving economic needs and support the nation’s vision of becoming a global financial hub.
CBK has encouraged banks to inform their customers about these developments and assist them in transitioning to the new system. This collaborative effort aims to ensure uninterrupted service and enhance the overall payments infrastructure in Kenya. As the backbone of the country’s domestic and regional payment transactions, KEPSS has processed over 5.3 million transactions valued at over Ksh 45 trillion between August 2023 and August 2024, highlighting its crucial role in Kenya’s financial ecosystem.
CBK to Migrate Kenya’s Payment System to ISO20022 Standard
