From 1 July 2025, the Kenya Electronic Payment and Settlement System (KEPSS) will run from 7:00 a.m. to 7:00 p.m. on business days, an increase from its previous window of 8:30 a.m. to 4:30 p.m.

KEPSS, which sits at the core of Kenya’s high-value payment ecosystem, is currently accessible only to banks and a few regulated institutions. By extending operational hours, the Central Bank of Kenya (CBK) is working towards making banks’ lives easier and preparing the ground for a larger transformation. 

The extension strengthens liquidity management, reduces settlement delays, and supports more efficient cash flow across government, corporate, and financial entities.

While the CBK has been quiet about the full scope of its roadmap, signs are emerging that Kenya is aligning itself with countries like India and Singapore, where RTGS systems operate round-the-clock and are open to non-bank entities. 

At present, fintechs and telecom companies in Kenya operate on the fringes of this infrastructure. They’re forced to rely on third-party integrations that increase costs and complexity, a reality that slows innovation and restricts competition.

That could change.

During the announcement, CBK Governor Dr. Kamau Thugge stated, “This change will reduce settlement risks, improve cash flow management, and enhance Kenya’s role as a regional financial hub.” 

That points to a vision in which Kenya’s financial core becomes more accessible, resilient, and regionally competitive.

Importantly, the move aligns with the objectives of the National Payments Strategy 2022–2025, which aims to modernise Kenya’s payment systems and ensure greater financial inclusion. 

One major step in that direction was taken in October 2024, when KEPSS migrated to the ISO 20022 messaging standard, a globally recognised protocol that supports richer financial data, faster processing, and better cross-border integration. 

With this upgrade, Kenya now shares a technical language with the likes of the European Central Bank and the Reserve Bank of India.

However, the long-term prize is real-time, round-the-clock digital settlement. Kenya isn’t there yet, but the signal shows it’s coming.

Allowing licensed non-bank financial service providers to plug directly into KEPSS would radically change the direction the playing field.

It would open up the infrastructure for cheaper and more flexible payment products, particularly in the customer-to-business (C2B) space where current options are overwhelmed by a handful of legacy providers.

This isn’t about PR or green labels for marketing brochures, accountability has become indispensable. The CBK has rolled out the Kenya Green Finance Taxonomy (KGFT)—a list that defines what’s actually green and what’s not. 

Banks are expected to use this as a yardstick when deciding who gets the money and at what environmental cost.

And it’s not just about making sure banks say the right things. It’s about what they fund. The move targets one of the biggest problems in sustainable finance—greenwashing. 

That’s when companies slap on the “eco-friendly” badge without the receipts to back it up. According to CBK, “The taxonomy may support the reduction in financial sector risks through enhanced management of environmental performance.”

For now, banks in Kenya can ease into it. Voluntary use of the taxonomy is allowed until the end of the 18-month grace period. After that, compliance will no longer be optional. 

The regulator said: “The CBK is issuing this framework to commercial banks and mortgage finance companies licensed under the Banking Act (Cap 488) for application on a voluntary basis, for a period of 18 months from the date of issuance. Thereafter, implementation will be mandatory.”

So, what’s in it for the banks? Clarity. Direction. And for those who get it right—trust from green investors. KGFT will help lenders separate real climate-aligned projects from those just playing dress-up. 

It provides a consistent method for measuring how much of their portfolio is tied to carbon-heavy industries. Oil and gas, large-scale agriculture, and heavy polluters? They’ll no longer fly under the radar.

What’s driving this? The urgency is real. Kenya ranks among the countries most exposed to climate shocks. Floods, droughts, unpredictable rain patterns—you name it. And with vital sectors like agriculture and energy hanging in the balance, the financial sector can’t afford to keep fuelling the problem.

The KGFT has roots in international best practice, with the European Investment Bank lending its expertise. CBK says it’s tailored to local needs, but draws lessons from systems already running in the EU and South Africa. “During the 18-month transition, institutions will build their capacity and make the necessary adjustments in preparation towards mandatory application of the taxonomy,” CBK added.

To be clear, this isn’t just a box-ticking exercise. It’s a change in how the financial sector thinks. It changes how banks assess risk, who they lend to, and how they report on their exposure to climate-related liabilities. Once the full rollout kicks in, no bank will be able to hide behind vague sustainability claims.