In a move to revolutionize the country's money transfer network, the Central Bank of Kenya (CBK) is set to launch the Fast Payment System (FPS), a new instant payment system that will allow Kenyans to make transactions across all financial institutions, including banks and payment service providers (PSPs).

The FPS will integrate various payment services offered by financial institutions, enabling customers to send and receive money instantly from anyone, anytime, anywhere, regardless of the type of institution they belong to. This move is expected to stimulate economic activity through faster payments and make it easier for Kenyans to access financial services.

The FPS is a significant advancement from the existing payment systems, which have major challenges, including the lack of a centralized switching mechanism, costly bilateral arrangements, and a closed nature. The new system is expected to address these challenges and lay the foundation for an open and fully interoperable Digital Public Infrastructure (DPI).

The launch of FPS is a significant development for the tech and startup community in Kenya, as it will provide a more efficient and inclusive payment system, promoting financial inclusion and stimulating economic growth.