The value of transaction through Kenya Electronic Payment and Settlement System (KEPSS) jumped in 2023 to Ksh45.5 trillion from Ksh38.1 trillion a year earlier.
- Central Bank of Kenya’s (CBK) Financial Stability report indicates some 8.3 million messages were processed through Kepss in 2023 compared 7.1 million messages in 2022.
- The CBK report gives data of volume and value of messages transacted through Kepss from 2010 to last year.
- As compared to the COVID-19 Pandemic period, however, the number of messages processed through EAPSS rose from 28,411 in 2020 to reach the peak of 44,052 in 2022 albeit easing to 36,516 in 2023.
“The increase in the volume and value of transaction processed indicates recovery in economic activities post-COVID–19 pandemic and operational efficiency of Kenya Electronic Payment and Settlement System (KEPSS) that guarantees speed, security, and reliability,” notes CBK in the survey.
“The growth in the values and volumes processed through the system requires stronger oversight to ensure appropriate measures are put in place to mitigate potential risks, such as fraud related to endpoint security and liquidity risk. These are critical for effective settlement of obligations and enhancing confidence among users of finality and irrevocability of payment instructions.”
Regional Electronic Payment and Settlement System
Relative to 2022, transactions settled through the East African Community (EAC) Payment and Settlement System (EAPSS) had mixed performance in 2023. While the number of messages through EAPSS declined by 17.1 percent in 2023 compared to 2022, the value of transaction settled increased by 10.0 percent or USD 82.1 million.
The value of the transactions concluded has however maintained strong growth, from USD 456 million in 2020 to USD 905 million in 2023 or 98.4 percent growth. “This highlights growing importance of this system in the EAC regional trade and its stability,” says CBK.
Like the EAPSS, the Common Market for Eastern and Southern Africa (COMESA) Regional Electronic Payment and Settlement System (REPSS) continue to record steady growth since operationalization in 2019.
While the number of messages processed increased from 1 in 2019 to 11 in 2023, the value of transactions settled through REPSS increased from Euros 4,538 to Euros 876,310 during the period.
On the USD side of REPSS, the number of messages increased from 659 in 2019 to 1,586 in 2023 with corresponding value of the transactions settled rising to USD 111 million in 2023 from USD 55.7 million in 2019.
“The steady growth signifies recovering growing cross-border trade within these economic blocs. Stability of these regional payments infrastructure is therefore critical for the regional economies and financial system stability.”
