The Central Bank of Kenya (CBK) is planning a new national payment switch intended to reduce the cost of moving money between banks, mobile‑money platforms and other payment providers.

The switch is outlined in the Draft National Payment System Policy released in August 2026, which identifies high transaction fees and fragmented payment platforms as key challenges for consumers and businesses.

Treasury and CBK want the system to support instant payments nationwide, enabling real‑time transactions across different payment platforms.

The draft policy calls for the development and implementation of a national instant payment switch as part of a broader effort to create a more integrated payment ecosystem.

While Kenya has made progress linking mobile‑money services, the government says interoperability with banks, payment service providers and government platforms remains uneven.

The proposed switch would allow different payment systems to communicate through common technical standards and shared infrastructure, closing existing gaps.

Open API standards are also slated for introduction, enabling financial institutions and payment providers to connect their systems and process cross‑platform transactions.

The draft policy states that banks, payment service providers and system operators would be required to adopt national or global messaging standards to improve transaction data exchange.

Treasury and CBK plan to offer incentives to institutions that achieve seamless interoperability and will conduct regular compliance audits to ensure technical and operational standards are met.

The draft does not prescribe specific fee caps, meaning any reduction in transfer charges will depend on how providers price services after the switch is operational.

Additional proposals in the draft include amendments to payment laws, a testing framework for new payment technologies, and expanded access for non‑bank firms to key payment systems.