The Central Bank of Kenya (CBK) has announced the extension of the operational hours for its national payment system. Beginning July 1, 2025, the Kenya Electronic Payment and Settlement System (KEPSS), including the Real-Time Gross Settlement (RTGS) platform, will now operate from 7:00 AM to 7:00 PM on weekdays. This marks a significant expansion from the previous window of 8:30 AM to 4:30 PM.

The extended hours apply exclusively to business days, with weekends and public holidays remaining exempt. This change is a calculated step in CBK’s broader mission to modernise Kenya’s financial systems and improve both institutional and individual transaction experiences.

Driving Force: Financial System Efficiency

This policy shift is not merely procedural; it reflects a fundamental evolution in how Kenya is preparing its financial systems for a faster-paced, digitally driven economy. The extension allows for earlier and later settlements of high-value transactions, reducing congestion during peak hours and easing liquidity pressures, especially for commercial banks, state agencies, and corporate players.

By enabling smoother fund transfers and settlement processes, CBK aims to reduce payment delays that previously affected critical sectors such as procurement, public service disbursements, and business operations. It empowers stakeholders to initiate or settle urgent payments without being constrained by an early system cut-off.

Strategic Alignment with Modernisation Goals

This move aligns closely with the Central Bank’s National Payments Strategy 2022–2025, which outlines a vision of a secure, efficient, and inclusive payment ecosystem. The strategy emphasises the need for responsive financial systems that adapt to global changes in technology, customer expectations, and cross-border transactions.

Expanding the operational hours of the RTGS system complements this vision by ensuring the core infrastructure of the financial sector remains active and supportive of real-time economic activities. It is also a foundation for more ambitious steps such as transitioning toward 24/7 operations in future phases.

Regional Impact and Competitive Positioning

As regional trade intensifies and capital movements grow more dynamic across East Africa, the extended hours place Kenya in a stronger competitive position. The move makes it easier for financial institutions to synchronise with global markets and for regional partners to engage with Kenya’s banking system without facing time zone or settlement limitations.

CBK’s initiative is expected to support regional trade settlements, increase investor confidence, and enhance Nairobi’s status as a growing financial and innovation hub.

Implications for Banks, Businesses, and the Public

For commercial banks, the additional hours reduce the strain of end-of-day bulk settlements. It provides a broader window for liquidity management, reduces the risk of failed payments, and enables more effective alignment with internal cut-off timelines.

Public sector agencies handling large disbursements — such as payroll, pensions, or supplier payments — benefit from improved flexibility and responsiveness. The business community, particularly those in high-volume or time-sensitive industries such as logistics, procurement, and finance, can now operate with greater certainty and control.

While this change is largely infrastructural, it filters down to individuals through enhanced banking services, faster interbank transfers, and more predictable transaction processing.

Looking Ahead: A Stepping Stone Toward 24/7 Systems

While the 12-hour extension is already transformative, it is also a prelude to deeper reforms. Globally, central banks are shifting toward real-time, 24/7 national payment infrastructures. CBK’s move suggests readiness to explore such possibilities in the coming years.

With the rise of instant payment solutions, mobile banking, and fintech innovations in Kenya, this policy could serve as a launchpad for a more comprehensive digital financial framework that operates round the clock.