Kenyan businesses are losing an estimated Sh68 billion annually due to bounced cheques, underscoring the growing need for faster, more efficient debt-recovery solutions in the country’s commercial sector.
According to the Central Bank of Kenya’s (CBK) Automated Clearing House report, at least 28,000 of the 1.2 million cheques processed every month are dishonoured.
The rejected cheques have an average value of Sh204,000 each, amounting to approximately Sh5.7 billion in disrupted business transactions every month.
The rising incidence of bounced cheques has continued to strain cash flows for businesses, particularly small and medium-sized enterprises (SMEs), which rely heavily on timely payments to sustain operations.
Delayed settlements often force companies to seek costly financing alternatives while pursuing lengthy debt recovery processes.
It is against this backdrop that debt recovery firm Verify-Cheque has launched a cloud-based platform aimed at helping businesses recover losses arising from dishonoured cheques more efficiently and at lower cost.
The company says the move marks a significant digital transformation from its traditional paper-based operations that served businesses across Africa between 1990 and 2009.
During that period, Veri-Cheque established itself as an alternative to lengthy legal proceedings, using manual systems and publication-based distribution channels to help businesses recover debts linked to bounced cheques.
According to the firm, its previous operating model achieved an average recovery rate of 62.3 per cent while also helping reduce the prevalence of dishonoured cheques and disputed accounts.
The service further enabled businesses to shorten their Days Sales Outstanding (DSO), improving liquidity and working capital management.
Although the newly launched Verify-Cheque platform retains the firm’s core objective of facilitating fast and cost-effective debt recovery, it introduces a fully digital infrastructure designed for modern businesses.
The company has completely phased out manual processes in favour of an integrated cloud-server solution accessible online.
At the centre of the new system is a subscriber portal that enables businesses to manage bounced cheque recovery from a single dashboard.
Through the platform, users can upload details of unpaid cheques, issue debtor notifications and submit cases for listing within the register of dishonoured cheques.
The portal also provides analytical tools that allow businesses to review payment histories, monitor debtor behaviour and assess recovery trends across their portfolios.
Real-time tracking capabilities give subscribers immediate visibility into debtor responses and settlement progress, while collection monitoring tools enable firms to track payments made on previously dishonoured cheques.
Verify-Cheque says the cloud-based architecture allows businesses to access recovery services on demand without the delays and administrative burden associated with traditional debt collection methods.
To encourage adoption, the company has introduced a simplified subscription model that allows businesses to self-onboard onto the platform.
New subscribers purchase platform credits worth $100 (Sh12, 930), which can then be used to access the Register of Dishonoured Cheques for $1 (Sh129.50) per search.
The firm is also offering an introductory incentive under which all dishonoured cheques submitted within the first 30 days of subscription will attract no recovery commission.
Under the recovery process, debtors are granted a 28-day period to settle outstanding obligations or raise disputes. If the matter remains unresolved, the cheque details are listed in the register, creating visibility that may encourage settlement.
Payments are made directly into the affected business’s account, ensuring that the client receives 100 per cent of the principal amount owed.
Verify-Cheque subsequently issues a separate invoice for its standard 15 per cent recovery commission, after which the debtor’s details are removed from the register.
The launch comes at a time when businesses are increasingly embracing digital tools to improve credit management and protect cash flow.
Kenyan businesses and households are still using cheques heavily, even as other African markets move toward digital payments.
Data by the apex bank shows the value of cheque transactions has stayed above Sh200 billion every month since 2014, except in 2020 when it fell to Sh193 billion as people avoided cash and cheques to reduce Covid-19 risk.
Over 11 months to November 2025, an average of Sh201.4 billion was transacted through cheques each month, taking the total to Sh2.215 trillion.
