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In a significant move towards modernising its financial infrastructure, the Central Bank of Kenya (CBK) has announced that from July 1, 2025, the operating hours for Kenya Electronic Payment and Settlement System (KEPSS) will be extended from the current 8:30 a.m. – 4:30 p.m. to 7:00 a.m. – 7:00 p.m. on weekdays.
This extension is expected to bring about numerous benefits and improvements to Kenya's financial sector.
One of the key advantages is the increased efficiency and accessibility of the payments ecosystem. The longer operating hours will allow for earlier initiation and later completion of large-value, time-sensitive payments, resulting in smoother transaction flows across banks, businesses, and government agencies.
The enhanced convenience and flexibility offered by the extended hours will benefit businesses, government institutions, and financial entities. By enabling transactions to be processed throughout a longer day, cash flow management can be improved, and bottlenecks caused by limited transaction hours can be reduced.
The risk associated with end-of-day transaction surges, which can cause system congestion or delays, is also likely to be reduced due to the extended settlement times. A longer operational window will spread transaction volumes more evenly, thereby diminishing operational and liquidity risks for financial institutions.
The extension of KEPSS operating hours aligns with Kenya's national objective of transitioning to a 24/7 digital economy, as outlined in the National Payments Strategy 2022–2025. This move positions Kenya in alignment with global best practices in payment system modernization.
The extended hours are also expected to boost financial inclusion and sector resilience. By making the national payment infrastructure more responsive and inclusive to the evolving needs of the economy, a broader range of users may gain access to financial services.
KEPSS, Kenya's version of an RTGS system, serves as a key infrastructure for the country's digital economy, facilitating secure and efficient high-value transactions. The extended hours will provide crucial support for the high volume and value of transactions processed, particularly given that KEPSS handles over 5.3 million transactions amounting to over Sh45 trillion within a year.
In addition, the potential access for non-bank entities to KEPSS could lead to a more inclusive digital economy in Kenya. This could be the first of several steps in a direction similar to global trends, where non-bank participants are included in real-time payment systems.
The extended hours of KEPSS could attract more businesses and investors to Kenya's financial sector due to the increased flexibility and efficiency. By enabling non-bank entities to access KEPSS, Kenya could become more competitive in its financial sector, potentially positioning itself as a hub for digital transactions in the region.
Fintech companies and telecommunications providers are advocating for access to Kenya's RTGS system, KEPSS. Currently, only banks and select regulated institutions have direct access to KEPSS. However, the CBK may eventually allow licensed non-bank entities to access KEPSS or a comparable real-time infrastructure layer.
In summary, the extension of KEPSS operating hours is a strategic move by the Central Bank of Kenya to enhance the efficiency, accessibility, and resilience of the country’s financial infrastructure, facilitating greater economic activity and reinforcing Kenya’s position in the digital payments landscape.
The extended hours of KEPSS, a crucial part of Kenya's digital economy, are anticipated to bring about significant improvements in the financial sector, particularly in the efficiency and accessibility of the payments ecosystem (finance). The extended hours will enable businesses, government institutions, and financial entities to manage cash flow more effectively and reduce transaction bottlenecks caused by limited hours (business).
The extended hours of KEPSS may also contribute to Kenya's transition to a 24/7 digital economy. This transformation could attract more businesses and investors to Kenya's financial sector, positioning the country as a hub for digital transactions, and potentially including non-bank participants in real-time payment systems (technology).
