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CBK Migrates Kenya’s Payment System to ISO 20022 Standard
Kenya becomes the first East African country to adopt ISO 20022 in its primary payment system, setting a benchmark for regional financial innovation and solidifying its role as a financial technology leader in East Africa.
: The Central Bank of Kenya updates KEPSS to ISO 20022, boosting faster transactions, fraud monitoring, and improved cross-border payments.
On October 14, 2024, the Central Bank of Kenya (CBK) made a significant leap in modernising Kenya’s financial systems by migrating the Kenya Electronic Payment and Settlement System (KEPSS) to the ISO 20022 standard.
The Role of ISO 20022 in Financial Messaging
ISO 20022 provides a universal messaging language, using XML to create a framework for various financial services. First introduced for financial institutions in 2004, this standard facilitates communication between different financial systems worldwide.
KEPSS: Kenya’s Financial Backbone
As the primary real-time gross settlement (RTGS) system, KEPSS handles Kenya’s large-value and time-sensitive payments, processing roughly $305 billion up to August 2024.
Known as the “backbone” of Kenya’s domestic and regional payment transactions, KEPSS now operates with enhanced speed and fraud monitoring capabilities, thanks to ISO 20022.
Benefits of the Migration to Kenya’s National Payments Strategy
The ISO 20022 migration is a “key component” of Kenya’s National Payments Strategy.
The CBK previously upgraded the Cheque Clearing House to this standard, and the recent KEPSS migration further advances Kenya’s payment systems, promoting financial inclusion and enabling cross-border interoperability.
Kenya’s Pioneering Move in East Africa
With this migration, Kenya is the first in East Africa to adopt ISO 20022 in its primary payment system.
By leading in this regional upgrade, the CBK sets a model for other East African countries, enhancing Kenya’s reputation as a regional hub for financial innovation.
Supporting Financial Growth and Global Integration
CBK’s implementation of ISO 20022 is crucial for Kenya’s financial goals, boosting investor appeal and reinforcing Kenya’s competitive position in a globalized economy.
This modern infrastructure also aligns Kenya with international standards, bolstering its role in East Africa’s economic development.