house facilitates the transfer of payments between banks operating
in Kenya on behalf of their customers. It provides the facility
for the exchange of checks and electronic transfers.
of local and upcountry cheques is centralized in Nairobi.
The settlement of the items is automated via diskette and
all cheques are MICR encoded. Clearing takes place twice a
day at 10.00 a.m. and 12.00 p.m.
The second clearing session relates to high value items delivered
during the 10.00 a.m. session. No new items are delivered
to the clearing house at this session. There is a foreign
currency clearing house for a few member banks. All foreign
currency checks are exchanged by member banks and settlement
takes place by foreign currency draft or telegraphic transfer.
Foreign currency clearing is still manual and takes place
3 times a week.
dating of transactions depends on the locale on which these
are drawn. The clearing period for local and upcountry checks
is 4 days and 10 days for remote areas. However, checks with
a value greater than Kshs.10 million have a clearing period
of 2 days. Remote areas are those locations that are difficult
to reach. There are charges for banking checks that are not
drawn on Nairobi.
Foreign Currency Clearing
house exists to enable the settlement of foreign currency
checks drawn on banks present in Kenya. This facility reduces
the clearing time taken to settle interbank accounts. There
are 7 members of this clearing house and Citibank N.A is a
member. Clearing takes place 3 times a week and settlement
occurs same day for USD transactions and next day for all