Kenyans cling to cheques as Africa peers move on

The Central Bank of Kenya (CBK) has been reluctant to phase out cheques in the country, unlike in other African countries such as South Africa, Namibia, Lesotho, Eswatini, and Botswana, and developed economies like Finland, Poland, and the Netherlands.

An analysis by the CBK covering 11 months to November 2025 shows that an average of Sh201.44 billion was transacted through cheques every month, sending the transaction value in the period to Sh2.215 trillion.

Despite Kenya’s reputation as a leader in digital financial services in Africa, the cheque continues to play an outsized role in the country’s payment landscape. From Sh2.051 trillion cheque deals in 2011, the value peaked at Sh2.646 trillion in 2015 before a slight decline to stay above Sh2.5 trillion by 2021.

Kenya pioneered mobile money with M-Pesa in 2007 at a time when cheque transactions were averaging over Sh3 trillion annually.

However, the value of cheque transactions dropped from Sh3.332 trillion in 2009 to Sh1.81 trillion in 2010 —a decline linked to the government’s decision in 2009 to discontinue the use of cheques for all government payments. The figure recovered to above Sh2 trillion, showing the continued use by the private sector.

In addition to mobile money deals, real-time gross settlement systems (RTGS) and interbank mobile payment networks like PesaLink have expanded the reach of electronic payments, reduced settlement times, and provided instant funds transfers. RTGS is a system whereby bulk payment transactions are cleared and settled on a continuous basis.

However, cheques have retained their place in business and institutional payments, especially for large or bulk transactions where a physical record and delay in settlement are seen as advantageous for cash-flow management.

Kenya National Police DT Sacco CEO Solomon Atsiaya said while most of the sacco’s members have embraced digital transactions and ditched cheques when it comes to personal transactions, payments to suppliers have kept the relevance of cheques.

“Mobile banking is taking over due to convenience. The cheque system is dying when it comes to personal transactions, but for supplier payments, it still makes a lot of sense, especially on high-value deals,” said Mr Atsiaya.

“On mobile platforms, you can only transact as much, and so high-value deals still make a lot of sense for cheques and RTGS. We pay our suppliers through RTGS, and the requirement is that we have to issue a cheque to the settling bank.”

Many Kenyan businesses rely on cheques for contract enforcement, auditing, and reconciliation. Cheques provide a physical paper trail that accountants and auditors find familiar and legally robust.

In corporate Kenya, post-dated cheques are also a common working capital tool. They allow suppliers and creditors to receive funds at a future date while the issuer retains liquidity in the short term.

The CBK has resisted a full phase-out of cheques, instead opting to reform the system while protecting those who depend on paper instruments. In 2022, Uganda halved the maximum allowed cheque value across the currencies, reducing that written in Kenyan shillings to Sh300,000.

The CBK has justified its stance, stating that segments of the business community, especially the small and medium enterprises, still face barriers to full electronic integration. In addition, some small firms lack banking interfaces or fear fees and technical complexity in using digital solutions for larger transactions.

The CBK notes in the national payment strategy for 2022-2025 that even though there is a global shift away from paper-based instruments such as cheques to electronic platforms, the transition has to be handled carefully to avoid “digital exclusion.”

“The review of current value-capping will be considered in order to mitigate the risk of digital exclusion that may arise due to businesses and individuals who still rely on cheques as the only means of making payments,” noted the CBK in the strategy paper.

Even though the value of cheque transactions appears resilient, the central bank notes that cheque volumes and values continue to fall relative to the size of the economy as individuals and businesses make greater use of other electronic payment instruments such as RTGS and mobile money.

The CBK and Kenya Bankers Association —the lobby for banks— have been investing in faster clearing systems, reducing settlement time and enhancing electronic alternatives rather than imposing outright phase-out.

The reforms have left the country holding on to a financial tool that allows payments of up to Sh999,999. The cheques now clear within a day, down from five days in 2011.

As Kenya holds onto cheques, more African countries are walking away. Burkina Faso discontinued cheque payments in all public entities starting in October 2025, citing the need to avoid frequent operational challenges such as higher administrative costs, payment delays, and transaction failures.

Starting June 2026, Zambia has announced that cheques will no longer be accepted, adding to the growing list of economies phasing out this payment instrument. The country cited declining usage, fraud risks, high costs, environmental concerns, and the rise of faster electronic payment methods.

“Compared with electronic payment methods, cheques are much more prone to fraud associated with forgery, alterations, theft of cheque books and unauthorised use,” said Bank of Zambia in a public notice.

“The high costs related to cheque book production, processing infrastructure (i.e. system upgrades, hardware maintenance, software license fees e.t.c.), and other operating costs are no longer justifiable given the continuous reduction in the usage of cheques.”

Seychelles has been gradually phasing out cheques, with the government having stopped accepting personal cheques effective May 2025. Effective May this year, it will stop accepting cheques from businesses as it pushes to digitise transactions.

Countries such as Ghana are battling increased challenges with cheques. In November 2025, the Central Bank of Ghana introduced a new directive to curb the menace of dud cheques —cheques that bounce due to insufficient funds.

Under the directive, those who issue three dud cheques will be classified as serial dud cheque issuers and locked out of the clearing system, denied all forms of bank credit, and barred from opening current accounts for at least five years.

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