kenya to Launch Nationwide Fast Payment System Across Banks and Financial Institutions

The Central Bank of Kenya (CBK) is set to roll out a new fast payment system designed to streamline transactions across all banks and financial institutions in the country. The initiative is part of the CBK’s ongoing efforts to enhance the efficiency of Kenya's financial ecosystem and boost financial inclusion.

The new system, known as the **National Fast Payment System (NFPS)**, will allow real-time fund transfers between banks and mobile money platforms, offering Kenyans an instant, secure, and low-cost method to send and receive money. The NFPS is expected to drastically reduce transaction times from hours to mere seconds and will operate 24/7, making Kenya’s financial system one of the most advanced in Africa.

CBK Governor, Dr. Patrick Njoroge, noted that the launch of the NFPS marks a significant milestone in modernizing the country’s financial infrastructure. “This system will revolutionize how money moves across our economy, increasing efficiency and fostering a more inclusive financial sector,” Dr. Njoroge said. “It also aligns with our broader vision of a cashless economy.”

The NFPS will integrate Kenya’s robust mobile money ecosystem, including platforms like M-Pesa, T-Kash, and Airtel Money, with the banking sector. Customers will be able to make seamless payments between mobile wallets and bank accounts without delays, benefiting individuals, businesses, and the government.

Kenya’s fast payment system is modeled on global best practices, similar to systems in the UK and India, which have proven to enhance economic activity by speeding up transactions.

The CBK has collaborated closely with stakeholders in the banking and fintech industries to ensure the smooth implementation of the system, which is expected to go live in early 2025. Financial institutions across the country have been directed to integrate the NFPS infrastructure to offer these real-time payment services to their customers.

The launch of the fast payment system is expected to strengthen Kenya’s position as a leading financial hub in Africa and contribute to economic growth by enabling faster, safer, and more efficient payment processing for all Kenyans.

West Arekame - Media  Correspondent