KBA eyes payment system for Kenyan banks with new firm
Kenya Bankers Association chief executive Habil Olaka. PHOTO | SALATON NJAU
What you need to know:
The Integrated Payments Service Limited (IPSL) is a fully owned KBA subsidiary that will provide technology-based payment solutions to the lobby's member banks at subsidised rates.
The new payments platform, which is currently in its testing phase, is expected to address inefficiencies within the banking payments system in Kenya.
Banking industry lobby, the Kenya Bankers Association (KBA), has established a payments delivery service firm as it eyes the development of an interoperable industry payment solution for Kenyan banks.
KBA chief executive Habil Olaka says the new offshoot to be known as the Integrated Payments Service Limited (IPSL), is a fully owned KBA subsidiary that will provide technology-based payment solutions to the lobby's member banks at subsidised rates.
“It will provide a go-to market platform via the Kenya Interbank Transaction Switch (KITS) geared at harnessing digital payment solutions for the local market,” Mr Olaka said.
He reckons that the new system will address inefficiencies within the banking payments system in Kenya through innovation, enhanced efficiency and risk management.
IPSL is expected to soon unveil the person-to-person (P2P) payment solution.
The platform is currently in its testing phase with more than 20 member banks participating in the user trials.
According to IPSL's chief information officer Michael Mbuthia, the technology will run a new generation interoperable payment transactions platform.
The platform is expected to complement KBA’s existing clearing house and follows the recent signing of a financing agreement between KBA and Bank of Baroda as the project's financers.
