NAIROBI, Kenya, Oct 15 – The Central Bank of Kenya (CBK) has successfully transitioned to the Society for Worldwide Interbank Financial Telecommunications’s (SWIFT) ISO20022 global payments messaging standard.
The adoption is designed to improve the quality, richness, and flexibility of payment message formats, enabling enhanced data sharing and better interoperability between financial institutions globally.
Prior to this, the CBK was utilizing the Kenya Electronic Payment and Settlement System (KEPSS), which serves as Kenya’s Real-Time Gross Settlement (RTGS) system, responsible for processing high-value and time-critical payments. The adoption of ISO 20022 introduces a more standardized and structured method of data exchange, which is set to further improve efficiency and reduce risks in financial transactions both locally and internationally.
The migration aligns Kenya with global financial trends and is expected to contribute to more secure and faster payments, improving the country’s integration into the global financial system.
“The migration of KEPSS to ISO20022 brings significant benefits, including faster settlement times, streamlined processing, and improved liquidity management for financial institutions. The Standard’s rich data formats will aid in monitoring fraud and improve the detection and prevention of illicit transactions,” CBK said in a statement.
“Additionally, the standardisation 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. Overall, these benefits will enhance the convenience, speed and security of payments for corporates and customers alike.”
Between August last year and this year, KEPSS processed over 5.3 million transactions valued at over Sh45 trillion for local currency transactions.
“CBK has directed banks to inform their customers and provide necessary support to ensure seamless service. CBK 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.”
