Kenya: Cheque Truncation System Set to Go Live On Aug 15

The printing of the new generation cheque is almost complete as the date for the truncation system to go live draws near. According to the Kenya Bankers Association (KBA), about 95 per cent of the new models have been printed ready for issuing and are available for use.
The system, which is expected to be live from August 15th, 2011 will be faster and more efficient for customers.
Old cheque designs will therefore be replaced with the new ones as part of the association's efforts to enhance efficiency.

Some of the benefits that customers across the country will experience are a faster and securer clearing system.
The Cheque Truncation System will phase out the cumbersome practice of physically transferring cheques from all bank branches countrywide to the automated clearing house using courier services.
Additionally, it will reduce paper work in banks thus reducing opportunities for fraud.
Central Bank of Kenya governor Njuguna Ndung'u said of the improvement: "In today's fast paced electronic environment, the banking sector needs to remain at the forefront of protecting customers and ensuring there is maximum efficiency and returns on their deposit as well as minimal risk to their transactions."
In a statement sent to the newsroom, KBA chief executive Habil Olaka said that accessing banking services to a wider population at an affordable cost to the client is the main challenge facing the country.

"All our initiatives such as value capping, currency centres and credit information sharing are geared towards making banking affordable, safer and accessible," he said.
The body urged all customers to discontinue use of the old design cheque books as these will take up to 21 days to clear.
"All a customer needs for replacement is to order the new cheque book at their respective banks in the usual manner," Olaka explained.
This system will cater for both the Kenya shilling cheques and domestic foreign currency cheques drawn on banks in Kenya.
Clearing processes on foreign cheques drawn out of Kenya will be unaffected.