Central Bank bets on stocks payment to boost trade - Daily Nation

Central Bank bets on stocks payment to boost trade

Tuesday January 27 2015

Central Bank governor Prof Njuguna Ndung'u. Payments for all the sales of shares and bonds through the Nairobi Securities Exchange by the Central Bank of Kenya through its real time gross settlement (RTGS) system will enhance regional trade, the regulator has announced. PHOTO | DIANA NGILA |

Central Bank governor Prof Njuguna Ndung'u. The Public Service Commission will for the first time nominate Kenya’s Central Bank governor. PHOTO | DIANA NGILA |  NATION MEDIA GROUP

By NATION CORRESPONDENT
More by this Author

Payments for all the sales of shares and bonds through the Nairobi Securities Exchange by the Central Bank of Kenya through its real time gross settlement (RTGS) system will enhance regional trade, the regulator has announced.

The platform, which was officially launched in Nairobi yesterday - it is popularly known as KEPSS - went into effect on January 15.

Previously, cash settlement for securities transactions was handled by four commercial banks appointed by the Central Depository & Settlement Corporation.

Speaking during the ceremony at Serena Hotel, CBK Governor Njuguna Ndung’u said its increased use would enhance Kenya’s financial position and facilitate international trade.

He said the system would also promote intra-trade and inter-trade in the region through efficiency, and making the transaction costs cheaper.

“The system simplifies the process as well as enabling cross-border payment and transfer of value within the region in easier, safer and more efficient way,” Mr Ndung’u said.

He said settlement using the platform was aligned to the broader East African Community objective of enhancing efficiency as the region prepares for the integration of the financial system.

Mr Ndung’u said the volume of transactions that the system had handled was proof of its success in the financial sector.