VALUE CAPPING/RTGS
In our endeavor to continuously improve our services, we write herewith advising that Kenya Bankers Association in conjunction with the Central Bank of Kenya have introduced a new clearing process for items whose amounts will be in excess of Kshs 1.0M.

Accordingly, with effect from 1st October 2009, all local clearing items i.e. cheques, direct debits, standing orders and EFTS whose amounts are over Kshs 1.0 M will be processed through the RTGS payment system.

This rule also affects domestic foreign currency cheques for values exceeding;

USD- 35,000.00

GBP – 15,000.00

EUROS -30,000.00

This does not affect in-house cheques.

The process has a cut off time of 2.00pm Monday to Friday.

The benefits of this new payment system to you are as outlined here below:-

• You will receive payment within 4 hours from the time the remittance instructions are given to the bank. (Note that the payment will no longer take four days to clear).
• The payment system is efficient.
• The payment system is safe, as the instructions to transfer funds will have to be done in the presence of a bank official in the bank hence reducing risks of cheques being lost and presented to the wrong persons or forging of the same.

However, should a client wish to deposit a cheque for amounts in excess of the Kshs 1.0M, the bank will proceed and clear the cheque for payment although the same will no longer take the initial 4 days to clear but will take 21 days.

As such, you are encouraged to adopt this new payment system in your future transactions.

Charges for the service are 500.00