Kenya's KEPSS Modernisation: How East Africa's Largest RTGS Became an Early Continental ISO 20022 Adopter

Kenya's central bank completed a significant modernisation of its high-value payment system in late 2024 that has received little attention outside the region. The Kenya Electronic Payment and Settlement System (KEPSS), the country's sole RTGS, migrated to ISO 20022 on 14 October 2024 - making Kenya one of the earliest adopters on the African continent. Six months later, the CBK extended KEPSS operating hours by 3.5 hours daily, adding capacity for a system that processes approximately KES 39 trillion (roughly $305 billion) annually.

These are not cosmetic upgrades. Together they position Kenya's settlement infrastructure for cross-border interoperability with SWIFT's CBPR+ network, compatibility with the emerging East African Community payment integration initiative, and significantly longer daily windows for high-value transactions.

The ISO 20022 Migration

KEPSS had been running on legacy SWIFT FIN messaging since its original deployment. The migration to ISO 20022 was a four-phase project that culminated in a phased rollout during September-October 2024:

Pilot Phase: 16-20 September 2024 with select institutions

Dress Rehearsal: 23-26 September 2024 with all participants Go-Live Release: 30 September 2024 Full production: 14 October 2024

The CBK described the migration as "a key component of Kenya's National Payments Strategy" and noted that the Cheque Clearing House had already been migrated to ISO 20022, meaning Kenya now has consistent messaging standards across both its high-value and retail clearing systems.

Why it matters for cross-border flows: SWIFT's Cross-Border Payments and Reporting Plus (CBPR+) initiative requires all cross-border payment messages to use ISO 20022 by November 2025 (with the final structured address mandate extending to November 2026). By completing its domestic migration a year ahead of the SWIFT deadline, Kenya ensured that KEPSS participants would not face a dual-format burden - they now use the same message structure for both domestic settlement and cross-border SWIFT payments.

Practical benefits cited by the CBK: Richer data in payment messages (structured remittance information, purpose codes) Enhanced fraud monitoring capabilities through standardised data fields Improved straight-through processing rates for participating banks Interoperability with global payment networks using the same standard

Extended Operating Hours

Effective 1 July 2025, the CBK extended KEPSS operating hours from 08:30-16:30 EAT to 07:00-19:00 EAT - adding 3.5 hours of daily settlement capacity. The extension added 1.5 hours in the morning and 2 hours in the evening.

For a system processing $305 billion annually, extended hours have several practical effects:

Liquidity management: Banks can now settle obligations over a 12-hour window instead of 8 hours, reducing end-of-day concentration risk. The earlier opening allows morning liquidity positions to be established before peak transaction hours, while the later closing provides buffer time for delayed settlements.

Cross-border alignment: The 07:00-19:00 EAT window (04:00-16:00 UTC) now overlaps with European RTGS operating hours (T2 operates 02:30-18:00 CET on normal days), improving the settlement window for EUR-KES correspondent banking flows. This matters for Kenya's significant diaspora remittance corridors with European countries.

East African coordination: The extended hours improve overlap with neighbouring countries' RTGS systems in Tanzania, Uganda, and Rwanda, facilitating same-day cross-border settlement within the East African Community.

Kenya in the African ISO 20022 Context

Kenya's KEPSS migration is notable because it puts Kenya ahead of most African peers in messaging standard adoption. A handful of comparisons illustrate where the continent stands:

South Africa: SARB's SAMOS RTGS is still on legacy messaging. South Africa has announced ISO 20022 migration plans but has not published a go-live date.

Nigeria: NIBSS (which operates the NIP instant payment system processing 11 billion annual transactions) has not publicly announced an ISO 20022 migration timeline for its RTGS.

Egypt: The Central Bank of Egypt operates its RTGS on legacy infrastructure. No public ISO 20022 migration plan has been announced.

Ethiopia: Launched the new EthioPay-IPS instant payment system in late 2025 on modern infrastructure, but the National Bank of Ethiopia's RTGS remains on legacy messaging.

Kenya's position as an early African mover matters because the continent's cross-border payment integration efforts - including PAPSS (Pan-African Payment and Settlement System) and the EAC's new regional payment masterplan - will eventually require consistent messaging standards across participating countries.

The EAC Cross-Border Payment Integration

In March 2025, the East African Community approved a Cross-Border Payment Systems Master Plan during a meeting in Mombasa, Kenya. The plan envisions modernising and connecting payment systems across EAC member states - Kenya, Tanzania, Uganda, Rwanda, Burundi, the DRC, South Sudan, and Somalia.

The plan's core objectives include: Strengthening and modernising national payment systems Expanding and enhancing the East African Payment System (EAPS) Developing a regional instant retail payment switching mechanism Reducing cross-border payment costs (currently averaging 20-35% for a $200 transfer within East Africa, well above the global average of 12.5%)

Kenya's KEPSS modernisation positions it as the anchor infrastructure for EAC payment integration. As the region's largest economy and most technically advanced payment system, Kenya's adoption of ISO 20022 sets a de facto standard that other EAC members will likely follow.

What Practitioners Should Watch

For correspondent banks: Kenya's ISO 20022 compliance means KEPSS settlement messages now carry the structured data that global correspondent banks expect. This should reduce manual intervention rates and improve STP ratios for KES-denominated cross-border payments.

For payment service providers: The extended operating hours open new possibilities for same-day settlement of cross-border payments involving KES. PSPs operating in the Kenya-UK, Kenya-EU, and Kenya-US corridors should evaluate whether their cut-off times can now be extended.

For regional expansion planners: Any institution planning East African operations should monitor the EAC master plan implementation closely. Kenya's KEPSS will likely serve as the model architecture for the region, and early alignment with ISO 20022 messaging will be a prerequisite for participation in regional payment schemes.

For SWIFT participants: Kenya is now one of the few African countries with full ISO 20022 RTGS capability ahead of the SWIFT CBPR+ November 2026 structured address deadline. This gives Kenyan banks a compliance advantage in the global migration timeline.

Sources: Central Bank of Kenya - Press Release: Successful Migration of KEPSS to ISO 20022 (October 2024); Central Bank of Kenya - Press Release: Extension of Operating Hours for KEPSS (July 2025); Finextra - Bank of Kenya Migrates National Payment System to ISO 20022; EAC - Regional Payment System Masterplan to Drive Financial Integration and Digital Trade.