- Central Bank of Kenya (CBK) noted that a fast payment system (FPS) will integrate certain aspects of payments offered by financial institutions
- The regulator revealed FPS will enable customers to send and receive money instantly from anyone, anytime and anywhere
- Kenya Bankers Association (KBA) acting CEO Reimond Molenje welcomed CBK’s announcement of a technical working group to inform the development of FPS for Kenya
The Central Bank of Kenya (CBK) is set to launch a fast payment system (FPS) across all banks and financial institutions countrywide.
Source: Twitter
How will FPS help Kenyans?
In a statement on Friday, October 18, the regulator noted that FPS will integrate certain aspects of payments offered by financial institutions.
“FPS will enable customers to send and receive money instantly from anyone, anytime, anywhere, regardless of the type of institution a customer belongs to,” CBK explained.
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CBK announced the formation of an industry technical working group to design, launch and roll out the financial solution.
“The successful launch and rollout of FPS will enable Kenya to join the 57 countries globally that have an operational FPS,” it added.
What KBA said about FPS
Kenya Bankers Association (KBA) acting CEO Reimond Molenje welcomed CBK’s announcement of a technical working group to inform the development of FPS for Kenya.
“KBA recognises that additional investment is needed in Kenya’s digital public infrastructure to maintain our leadership in payment innovation and financial inclusion,” Molenje told TUKO.co.ke.
Molenje revealed that since 2017, KBA has invested in Integrated Payment Services Limited (IPSL), the operator of Pesalink—the open, interoperable, and ISO 20022-certified instant payment switch.
“Account-to-account instant payments over the Pesalink network are Kenya’s fastest-growing digital payment type. The Pesalink platform integrates 65 banks, fintechs, and telcos,” he added.
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JP Morgan Chase Bank to establish branch in Kenya
In other news, CBK authorised JP Morgan Chase Bank to establish a representative office in Kenya.
Sailepu Montet, a former deputy director of financial markets at the CBK, was appointed JPMorgan’s country manager for Kenya.
The approval was granted in accordance with Section 43 of the Banking Act after JP Morgan Chase Bank met all the stipulated requirements set forth by the CBK.
The representative office will operate as a marketing and liaison office for the bank’s parent company and affiliates.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
Source: TUKO.co.ke
