Kenya Extends KEPSS Hours and Licenses More Digital Lenders in Push for Modern Payments
In a major regulatory move this July, Central Bank of Kenya (CBK) announced two key reforms aimed at modernizing Kenya’s financial infrastructure: extending the operating hours of its real-time payments system and licensing a wave of digital lenders.
This announcement On July 1, 2025, CBK extended the operating hours for the Kenya Electronic Payment and Settlement System (KEPSS) from its previous 8:30 a.m.–4:30 p.m. schedule to 7 a.m.–7 p.m. on weekdays. This change comes after consultations with financial institutions and aligns with the 2022–2025 National Payments Strategy. According to CBK, the extension will support faster settlement of large-value and time-sensitive transactions—boosting liquidity, reducing settlement risks, ad nudging Kenya closer to a 24/7 digital economy.
In parallel, on June 5, the CBK licensed 41 new Digital Credit Providers, raising the total count to 126 licensed players in the digital lending space. These licenses are granted under Section 59(2) of the CBK Act, following rigorous vetting procedures covering licensing fees, AML compliance, data protection, consumer safeguards, and IT standards .
These reforms complement each other strategically: extended payment system hours enhance the financial system’s backbone, while expanding the pool of licensed digital lenders fuels growth in Kenya’s booming fintech ecosystem. For businesses, this means streamlined, faster transactions and a competitive digital lending landscape to support working capital needs. For consumers, especially gig workers, small entrepreneurs, and online shoppers, the changes promise easier access to digital credit and secure, efficient real-time payments.
Together, these moves demonstrate CBK’s commitment to embracing ISO 20022-compliant infrastructure, enhancing financial inclusion, and harmonizing Kenya with global standards. As the country transitions toward a digitally powered economy, these reforms lay important groundwork for safer, faster, and more accessible financial services.
