Reporter
Kenyans who pay using Cheques from rival banks will have their money cleared within one working day.
Initially the process would last up to three working days, leaving many businesses and individuals suffering.
Banks in Kenya would only clearing internal Cheques within 24 hours, and not those from rival banks.
Reports indicate that banks have upgraded the Automated Clearing House System (ACH) platform that they have been using for electronic Cheques transfer.
In the same breath, foreign currency-denominated Cheques will now clear within two days, and not the previous seven days.
Usage of Cheques has slowed down in Kenya because of the explosion of digital payment systems.
In January 2012, banks in Kenya cut the clearance time for cheque to two days from four days.
Back in the 1990s, cheques would take 14 days to be cleared.
“The new system will significantly improve clearing services for cheques, direct debits and EFTs in the country,” said the Kenya Bankers Association (KBA) CEO Mr. Habil Olaka.