The Central Bank of Kenya (CBK) has instructed banks to notify their customers about the migration of the Kenya Electronic Payment and Settlement System (KEPSS) to a new platform.

In a statement dated October 14, the CBK emphasized that banks should inform customers of the transition and offer the necessary support to ensure uninterrupted services. The regulator also announced that KEPSS has been upgraded to the Global Messaging Standard (ISO20022 Standard).

According to CBK, the new system is the latest international open standard for financial messaging that is being adopted globally.

“The Central Bank of Kenya (CBK) announces that, effective today, the Kenya Electronic Payment and Settlement System (KEPSS) has been successfully migrated to the ISO20022 Global Messaging Standard (“ISO20022 Standard”). KEPSS, which is Kenya’s Real-Time Gross Settlement (RTGS) system, is operated by CBK to process large-value and time-critical payments.

“CBK has directed banks to inform their customers and provide necessary support to ensure seamless service,” CBK stated.

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The regulator disclosed that the migration of KEPSS to ISO20022 brings significant benefits, including faster settlement of payments and prevention of illicit transactions.

“The Standard’s rich data formats will aid in monitoring fraud and improve the detection and prevention of illicit transactions. Additionally, the standardization provided by ISO20022 reduces the complexity of payments and significantly enhances efficiency.

“The ISO20022 Standard will enhance interoperability between domestic and international payment systems, facilitating easier cross-border transactions and increase the ease of doing business globally,” the bank explained.

CBK maintained that the migration positions Kenya as a leading and globally competitive payments destination and is a key component of the National Payments Strategy 2022-2025.

It affirmed that it is committed to continuous improvement and renewal of Kenya’s payments infrastructure to meet the evolving needs of the economy and support the country’s vision of becoming a global financial hub.