Kenya is making significant strides in modernizing its financial infrastructure with the recent extension of operating hours for its Real-Time Gross Settlement (RTGS) system, the Kenya Electronic Payment and Settlement System (KEPSS). Starting on July 1, 2025, KEPSS will now operate from 7 AM to 7 PM on business days, expanding from its previous schedule of 8:30 AM to 4:30 PM.
KEPSS serves as Kenya’s version of an RTGS system, which is essential for securely processing real-time, high-value payments between banks. This extension signifies a shift in the country’s approach to managing large-value, time-sensitive digital transactions, paving the way for further reforms that could enhance Kenya’s financial sector by increasing competitiveness, inclusivity, and reducing dependence on dominant private fintech platforms.
The extended operating hours offer greater flexibility for banks, businesses, and government agencies, indicating that the Central Bank of Kenya (CBK) is moving closer to implementing real-time settlement across longer time windows. This is a crucial step towards establishing a fully operational 24/7 digital economy in Kenya.
The move is particularly significant as fintech companies and telecommunications providers advocate for access to core payment infrastructure. Currently, only banks and select regulated institutions have direct access to KEPSS, posing a challenge for fintech founders and users who view the lack of public infrastructure for customer-to-business (C2B) payments as a barrier to affordability and competition.
While the CBK has not announced its next steps, there is speculation that licensed non-bank entities may eventually be granted access to KEPSS or a similar real-time infrastructure layer. This potential decision could lower entry barriers, reduce dependence on costly third-party integrations, and enable fintechs to scale alternative offerings.
By aligning with global trends in RTGS accessibility, the CBK is laying the groundwork for broader reforms. Countries like India, Singapore, and parts of Europe already operate real-time payment systems around the clock, some of which include non-bank participants. Kenya’s decision to extend operating hours could be the first in a series of steps towards a more inclusive and competitive financial landscape.
This development highlights Kenya’s commitment to modernizing its financial infrastructure and keeping pace with global advancements in real-time payment systems. The extension of KEPSS operating hours is a significant milestone that sets the stage for further innovation and progress in the country’s financial sector.
