Cheque clearance will now take a shorter time than the usual four working days.

Following the introduction of electronic cheque clearance system by Paynet Kenya and South Africa’s Finteq, banks can now electronically process and clear cheques, and other EFT (Electronic Funds Transfer) data between their institutions and the clearing house at Central Bank.

Once the new technology is in place, cheques could be cleared within a day after they have been banked.

“Whereas the solution is intended to expedite the cheque clearing process, the number of days will solely depend on the set procedures and controls of each financial institution,” said Paynet’s marketing manager Milka Njoroge.

All major banks in the country and all other banks who are members of the Kenya banker’s association will adapt the new clearance system although the association is yet to announce a deadline to which all members should have adopted the system.

Currently, banks have to build electronic files and submit them to the CBK for clearing.

by Lola Okulo