The Central Bank of Kenya (CBK) has upgraded the Kenya Electronic Payment and Settlement System (KEPSS) to the ISO20022 Global Messaging Standard.

According to the CBK, the ISO20022 Global Messaging Standard data format will allow the financial institution to monitor fraud, increase detection, and prevent unlawful transactions.

The changes, according to the CBK, will allow for shorter settlement times, more efficient processing, and greater liquidity management for financial institutions. 

Furthermore, ISO20022's standardisation will improve interoperability between domestic and foreign payment systems, said CBK.

CBK went on to say the ISO20022 Standard is an important aspect of the National Payments Strategy 2022-2025, which aims to create a secure, rapid, efficient, and collaborative payments system that promotes financial inclusion and innovation for Kenyans.

“The adoption of the SO20022 Global Messaging Standard is a key component of the National Payments Strategy, and builds upon major initiatives led by CBK in conjunction with the industry. This includes the migration of the Cheque Clearing House to the ISO20022 among others,” said the bank in a statement.

It added: “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 payment infrastructure to meet the evolving needs of the economy and support the country’s vision of becoming a global financial hub.”