The Kenya Kwanza administration is advancing plans to establish a faster and more interoperable payment system to rival Safaricom’s popular mobile money platform, M-Pesa.
The National Treasury announced its commitment to implementing the National Payment Strategy (2022-2025) while expediting the finalization of a National Policy on Digital Finance. This initiative aims to modernize Kenya’s payment ecosystem and address challenges in accessibility and affordability.
The Central Bank of Kenya (CBK), in collaboration with industry stakeholders, is spearheading efforts to launch a fast payment system. This system will enable seamless interoperability between retail payment services offered by banks and non-bank providers, fostering a more inclusive financial ecosystem.
According to the Treasury, the CBK is currently establishing a governance framework for the project and evaluating technological infrastructure options to ensure the system is efficient and robust. The new payment infrastructure, aligned with global best practices, will be developed as digital public infrastructure through a public-private partnership model.
Treasury officials expect this approach to make financial services more affordable, promote payment innovation, enhance financial inclusion, and strengthen oversight of the national payments system.
Kenya’s reliance on mobile money continues to grow, with transactions rising by 13.2% in the first nine months of 2024. Data from the Kenya Bureau of Statistics shows that Kenyans moved Sh6.5 trillion via mobile money platforms during this period, up from Sh5.8 trillion in 2023.
While M-Pesa has revolutionized financial transactions, its dominance has sparked concerns about competition. The government’s push for a more interoperable payment system aims to level the playing field, allowing fair competition while improving financial access for all users.
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