Kenya is at the cusp of a major financial shift. The fast payment system in Kenya, championed by the Central Bank of Kenya (CBK), aims to rival Safaricom’s M‑Pesa by enabling instant, interoperable payments across banks and mobile money platforms. This new real-time system seeks to enhance financial inclusion and foster innovation across the country’s digital economy.
What is the CBK Fast Payment System?
Under the National Payment Strategy (2022–2025), CBK is creating a Fast Payment System (FPS) to allow seamless retail transactions between banks, mobile wallets, and other payment service providers This system will be managed via a proposed Special Purpose Vehicle—likely a public-private entity involving CBK, Safaricom, and commercial banks
Public-Private Model & Costs
- The governance model for FPS includes CBK holding 60 % ownership, with Safaricom and banks each holding 20 %
- Projected implementation could cost around $200 million (KES 25.9 billion) and may take up to four years
- Legislative changes will be necessary to empower CBK to operate the SPV
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Concerns from Safaricom & Banks
- Safaricom and the Kenya Bankers Association (KBA) warned that launching a new FPS is premature, potentially duplicating existing systems and slowing innovation
- They advocate for strengthening existing platforms such as Pesalink and integrating M‑Pesa into them—arguing this is faster and more cost-effective
Linking M‑Pesa & Pesalink
Safaricom and KBA support integrating M‑Pesa into Pesalink to break down silos between mobile wallets and banking transactions This would allow M‑Pesa users to transact easily with bank accounts and vice versa.
Why FPS Matters for Kenya
- Instant interoperability: Users from any platform—whether Safaricom, Airtel, or banks—can send and receive payments instantly
- Costs and inclusion: Transaction fees may drop, boosting uptake among smaller service providers and SME users
- Innovation boost: A unified payment switch could catalyse new financial products and level the playing field for fintechs .
The Road Ahead
CBK is currently working on technical infrastructure, legal frameworks, and stakeholder engagement . The timeline hinges on whether the SPV model gets legislative approval or if CBK opts instead to enhance Pesalink and M‑Pesa integration.
As Kenya embraces digital finance, the fast payment system in Kenya could be a game-changer—unlocking seamless, low-cost transactions and inclusive financial access. Whether CBK builds a new system or upgrades existing infrastructure, the move signals a decisive step toward a fully interoperable, innovative digital payment ecosystem.
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