Despite being at the forefront of digital finance innovation in Africa, Kenya continues to rely heavily on cheques, an aging banking instrument that many peers across the continent are phasing out.

According to recent analysis by the Central Bank of Kenya (CBK), the total monthly value of financial transactions conducted by cheque has remained above Sh200 billion nearly every month since 2014, with an average of Sh201.44 billion in the 11 months to November 2025.

Why Cheques Persist in Kenya’s Payment System

Kenya is widely recognised as a leader in digital payments — spearheaded by innovations such as M-Pesa, mobile banking and interbank mobile transfers like PesaLink — yet cheques still play a significant role, especially in business and institutional transactions.

Business leaders say cheques are still preferred for certain payments because they provide a physical audit trail and help with cash-flow management, particularly for large or bulk transactions. For some organisations, post-dated cheques remain a common working capital tool.

However, the CBK’s own data shows that while cheque volumes and values have held up in absolute terms, they are falling relative to the size of the economy as electronic alternatives continue to grow.

Regional Shifts Away from Cheques

Unlike Kenya, several African countries are moving decisively away from cheques:

• Burkina Faso has stopped accepting cheques in all public entities since October 2025.

• Zambia plans to stop accepting cheques from June 2026.

• Other nations including South Africa, Namibia, Lesotho, Eswatini and Botswana have already curtailed or phased out cheque use in favour of electronic payments.

These shifts reflect concerns over payment delays, administrative costs, and fraud risks associated with the paper-based system.

Modernising Payments, Not Abandoning Cheques

Rather than rushing to abolish cheques, the CBK and the Kenya Bankers Association (KBA) are pursuing reforms to make the instrument more efficient. Efforts include upgrading cheque-clearing systems to reduce settlement times — with cheques now usually clearing within a day — and enhancing electronic alternatives instead of an outright ban.

Bankers argue that upgrading to standardised, truncation-enabled cheques and automating portions of the clearing process will help reduce fraud, speed up cash-flows and bridge traditional and digital payment systems.

Balancing Innovation with Inclusion

The CBK has defended its cautious approach by emphasising the importance of avoiding digital exclusion — particularly for small and medium enterprises that may lack full access to electronic banking platforms.

In positioning Kenya’s payments landscape for the future, regulators and industry players are attempting to strike a balance: embracing rapid digital growth while ensuring that traditional instruments like cheques do not leave behind segments of the economy that still depend on them.