Kenya’s Digital Payments Surge in 2025: A Look at EFTs and Cheque Transactions

Kenya’s financial ecosystem continues to evolve rapidly as data from the Central Bank of Kenya (CBK) reveals sustained growth in Electronic Funds Transfers (EFTs) and steady adaptation in cheque-based transactions.
The data from the Automated Clearing House (ACH) highlights how both businesses and individuals are increasingly shifting toward digital and automated payment systems — a reflection of Kenya’s strong fintech infrastructure and a maturing banking system.

Key Highlights (January–July 2025)

 Insights from the Data

🔹 a) Consistent Growth in Electronic Funds Transfers (EFTs)

• EFT volumes increased from 1.52 million in January to 1.58 million in July, a 3.9% rise in just seven months.

• The value of EFT transactions climbed from KSh 78.95 billion in January to KSh 88.59 billion in July, marking a 12% growth.

• This consistent expansion reflects the continued adoption of digital banking channels, especially for salary payments, business settlements, and government disbursements.

Interpretation:
Kenya’s economy is rapidly digitizing, with EFTs becoming the preferred channel for large-value domestic transactions. The trend also suggests growing trust in interbank transfers and improved payment infrastructure reliability.

🔹 b) Cheque Transactions Still Significant, But Plateauing

• Cheque volumes hover between 1.1 to 1.25 million per month, showing limited growth compared to electronic payments.

• Cheque values remain high, averaging KSh 205 billion monthly, indicating continued use for corporate, institutional, and high-value transactions.

• July 2025 recorded the highest cheque value at KSh 217.2 billion, possibly driven by end-of-quarter settlements and fiscal-year closures.

Interpretation:
While digital payments dominate in volume, cheques still play a crucial role in formal business settlements, corporate transfers, and government payments, especially where documentation and verification are essential.

Broader Economic Context

The uptick in EFT activity corresponds with Kenya’s steady post-pandemic economic rebound and digital transformation initiatives, such as:

• The National Payments Strategy (2022–2025) by CBK aimed at enhancing the efficiency, security, and interoperability of payment systems.

• Increased integration between banks, SACCOs, and mobile money platforms.

• A continued push toward cashless government payments (eCitizen, IFMIS) and public-private digital service delivery.

At the same time, high-value cheque use suggests the coexistence of traditional banking instruments within Kenya’s hybrid financial landscape.

Comparative Perspective

Observation:
Digital payments are growing faster than cheque transactions — a signal that Kenya’s banking sector is successfully transitioning to a digital-first model. However, the persistent high cheque values underline corporate sector reliance on legacy clearing systems for trust and verification.

DatalytIQs Academy Insight

For learners studying Banking, Financial Technology (FinTech), or Monetary Economics, this dataset offers an excellent real-world example of payment system modernization and its link to economic efficiency.

Key analytical points to explore:

• Relationship between EFT growth and monetary circulation.

• Impact of digital payment adoption on transaction costs and banking profitability.

• Trends in cheque clearing vs. mobile and EFT channels as indicators of Kenya’s digital maturity.

You can even model transaction growth rates using time-series forecasting (ARIMA) or trend regression analysis for academic projects or research papers.

Policy and Industry Outlook

• EFT dominance is expected to grow further as banks continue to integrate API-driven payment platforms and real-time settlement systems.

• Cheque usage may decline gradually with the rise of RTGS, PesaLink, and mobile-based business solutions.

• The CBK’s push for instant retail payments (under the National Payments Strategy) will likely reshape Kenya’s clearing system over the next two years.

In summary, 2025 marks a turning point in Kenya’s transition from paper-based to fully digital interbank settlements.

Conclusion

The CBK’s Automated Clearing House data paints a clear picture of Kenya’s evolving payment landscape — one where electronic fund transfers lead the way in volume and innovation, while cheques remain relevant for high-value business transactions.
This shift underscores Kenya’s status as a regional leader in digital financial inclusion and a key model for emerging markets adopting cashless economies.