CBK announces extension of operating hours for high-value transactions

The Central Bank of Kenya (CBK) has announced the extension of operating hours for the Kenya Electronic Payment and Settlement System (KEPSS), the national Real Time Gross Settlement (RTGS) system, by four hours effective July 1.

In a statement, CBK said the move follows extensive consultation with participants of the system and in alignment with the objectives outlined in the National Payments Strategy 2022-2025.

The KEPSS operating hours will be revised from the current 8:30 am – 4:30 pm to the new schedule of 7:00 am – 7:00 pm on all business days with the exception of public holidays and weekends.

“This strategic enhancement is aimed at improving the efficiency, accessibility, and resilience of Kenya’s payments ecosystem. By enabling earlier initiation and later completion of large-value and time-sensitive payments, this move will support the country’s transition towards a 24/7 digital economy,” CBK added.

It said the new operating hours will enhance convenience by allowing businesses, government institutions, and financial institutions to have greater flexibility to process payments, improving cash flow management and reducing end-of-day settlement risks.

At the same time, the longer operational hours will bridge the gap between traditional banking hours and the demands of a modern economy, facilitating seamless transactions across time zones and increasing the competitiveness of Kenya as a regional financial hub and thus supporting the 24/7 economy.

” By expanding the time window for settlements, CBK reinforces its commitment to greater financial inclusion, allowing more individuals and entities to engage in the formal financial system with ease,” CBK further said.

It added that this will also ensure alignment with global best practices as it will mirror the progressive steps taken by central banks globally to modernise their payment systems, enhancing regional integration and interoperability of cross-border payments.

“CBK remains committed to ensuring that the national payments infrastructure continues to meet the evolving needs of the economy and to fostering a secure, efficient, and inclusive financial system,” it said.

KEPSS is an RTGS system which allows both processing and final settlement of funds transfer instructions take place continuously in real time from one bank to another mitigating systemic settlement risk inherent in large value settlements.

It was implemented on July 29, 2005, and due to technological advances and changes in
the payments landscape, it was upgraded on June 5, 2020.