Kenya Transitions to ISO 20022 for Enhanced Payment Efficiency and Security

The Kenya Electronic Payment and Settlement System (KEPSS), which functions as the Real-Time Gross Settlement (RTGS) platform, is managed by the Central Bank of Kenya (CBK) to facilitate high-value and urgent payments. This infrastructure plays a critical role in both domestic and regional transactions.

The CBK has announced that Kenya will move from KEPSS to the ISO 20022 Standard, an internationally accepted financial messaging framework. This upgrade promises faster transaction settlements, simplified processes, and better liquidity management for banks and other financial institutions. The standard’s enhanced data capabilities will improve fraud monitoring, making it easier to identify and prevent illegal activities, while reducing the complexity of payments to enhance efficiency.

ISO 20022 will also promote interoperability between local and global payment systems, making cross-border transactions more seamless and improving the ease of doing business worldwide. As a result, both corporations and individual customers will benefit from faster, safer, and more convenient payment solutions.

Globally recognized as the latest open standard for financial messaging, ISO 20022 has been embraced by many countries to modernize payment systems. Last month, the CBK instructed banks and microfinance institutions to begin testing the new system to accelerate high-value transactions while strengthening fraud detection mechanisms.

Kenya aims to adopt the system ahead of the SWIFT-imposed deadline of early 2025, signaling its commitment to aligning with international best practices and enhancing its financial infrastructure.