October 18, 2024
CBK to Launch Fast Payment System for Financial Inclusion
New Fast Payment System to Enable Instant Transfers, Cut Costs, and Enhance Financial Inclusion in Kenya.
The Central Bank of Kenya (CBK) has announced plans to launch a Fast Payment System (FPS) for the financial sector. The system will allow instant money transfers across different banks and financial institutions.
FPS is part of CBK's efforts to enhance financial inclusion and improve payment systems efficiency. The development involves collaboration with the Kenya Bankers Association (KBA), Payment Service Providers (PSPs), and financial institutions.
The system will address current interoperability challenges, such as costly bilateral arrangements. FPS aligns with global best practices and aims to reduce transaction costs for customers. The initiative follows CBK's previous efforts to improve P2P and merchant interoperability.
Once implemented, FPS will bring Kenya closer to the goals outlined in the National Payments Strategy 2022–2025. It also positions Kenya alongside 57 countries with operational FPS globally.Â