Regulatory Alerts2024-09-11
Microfinance Banks Circular No. 1 of 2024 - Migration of Domestic High Value Payment System to ISO 20022 Standards
The Central Bank of Kenya is leading the migration of the domestic high-value payment system (KEPSS) to ISO 20022 standards. This initiative, a part of implementing the National Payment Strategy for 2022-2025, modernises Kenya's payments landscape, enhancing operational efficiency and improving data analytics capabilities. The transition includes a pilot phase from September 16-20, 2024, followed by a dress rehearsal phase on September 23-26, with the official launch set for September 30, 2024. The Central Bank will work closely with financial institutions to ensure a smooth migration process.
BANKI KUU YA KENYA Haile Selassie Avenue P.O. Box 60000 - 00200 Nairobi, Kenya Telephone: 2860000, Fax: 3340192 September 11, 2024 MICROFINANCE BANKS CIRCULAR No. 1 OF 2024 TO: ALL CHIEF EXECUTIVES OF MICROFINANCE BANKS MIGRATION OF DOMESTIC HIGH VALUE PAYMENT SYSTEM (KEPSS) TO ISO 20022 STANDARDS The Central Bank of Kenya (CBK), in collaboration with the Kenya's financial industry, embarked on a journey migrating the Kenya Electronic Payment and Settlement System (KEPSS) to the ISO 20022 Standards. KEPSS is Kenya's payment system for high-value and time-critical domestic payments.
This migration is being undertaken as part of implementing the National Payment Strategy 2022
- 2025 and to modernise the National Payments System (NPS) to world class standards. The adoption of ISO 20022 messages will transform how financial messages are exchanged by enhancing operational efficiency and delivering richer usable data for analytics.
CBK is pleased to report that since the publication of the ISO 20022 Standards in March 2023, a significant amount of effort has been undertaken by the financial institutions in preparation and validation of ISO 20022 messages evidenced by comprehensive and successful user acceptance testing (UAT).
In order to support the transition to the new upgraded KEPSS ISO 20022 system, CBK requires all financial institutions to take note of the revised plan below: 1.
Pilot Phase (September 16-20, 2024): Participants will validate operational readiness, focusing on aligning technical interfaces and procedures with the new standards.
Dress Rehearsal Phase (September 23-26, 2024): A simulation of live operational conditions to confirm system readiness before the official launch.
Proposed Go-Live Date (September 30, 2024): The ISO 20022-compliant RTGS system will be officially launched, marking a significant milestone in enhancing Kenya's payments landscape.
CBK will work closely with financial institutions to ensure a smooth migration to the ISO 20022 standards. We appreciate your cooperation this far and we look forward to your continued support.
For enquiries, kindly email rtgssupport@centralbank.go.ke and/or swift@centralbank.go.ke.
Yours faithfully,
MICHAEL EGANZA DIRECTOR, BANKING AND PAYMENT SERVICES DEPARTMENT CC: DIRECTOR, BANKING SUPERVISION DEPARTMENT