NPS MODERNIZATION

The Central Bank of Kenya has directed great effort to the modernization of the payment systems in the last two decades. The objective of the modernization process was to systematically and continuously implement policies that would ultimately enable the country’s payment system to attain international standards and ensure that Kenya becomes a financial hub in the region as well as the preferred investment destination. Furthermore, a fundamental policy objective for payments modernization remains the achievement of safety, efficiency and effectiveness of the payment system as well as promoting access and inclusion to financial services. To achieve these objectives, the Bank works in close liaison with the Government, the Banking Industry and other stakeholders.

For more read the special advert that appeared in the East African newspaper for March 28 - April 3, 2011

CHEQUE TRUNCATION SYSTEM

The Central Bank of Kenya in conjunction with the Kenya Bankers Association (KBA) is pleased to announce the implementation of the Cheque Truncation System (CTS) in the Automated Clearing House. Cheque truncation refers to a process in which physical cheques presented for payment in a bank by individuals or corporate bodies are converted into electronic form and the image transmitted electronically to the Clearing House for processing and eventual payment by the paying bank (i.e. the drawer’s bank).

Download KBA Press Release

Reduced Clearing cycle for Cheques

Cheque Truncation System FAQs

GAZETTEMENT OF THE NATIONAL PAYMENT SYSTEM BILL, 2011

The National Payment System Bill, 2011, was gazetted on 2nd September 2011. This is a Bill for an ACT of Parliament to make provision for the regulation and supervision of payment systems and payment service providers, and for connected purposes.

National Payment System Bill, 2011