The Central Bank of Kenya (CBK) will review the National Payments Strategies (NPS) Act of 2011 and the NPS Regulation of 2014 to enable the apex bank to facilitate developments in the digital payments ecosystem.
CBK Governor Patrick Njoroge says the space is experiencing rapid changes and that there is a need to keep up with e-commerce in upcoming payment strategies.
The government currently runs cash services on digital platforms including the Integrated Financial Management Information System-IFMIS, the Government Human Resource Information System, the Integrated Payroll and Personnel Database and the Kenya Revenue Authority’s online tax filing system, known as i-Tax.
But a review of the draft National Payments Strategy shows that the Central Bank of Kenya is angling itself for the digital payments era.
National Treasury Principal Secretary Dr. Julius Muia says digital payments still face increasing risks such as fraud that the country will have to address.
The proposed Central Bank Digital Currency has been welcomed as an innovation that would help deepen financial inclusion.
Statistics by the CBK show that about 4.6 trillion shillings was transacted through mobile money platforms between January and November last year.