The Central Bank of Kenya (CBK) is proposing new legislation to enhance its oversight of digital payment companies. The National Payment System Bill, 2026, would grant CBK officers full access to these companies' premises to inspect records, interview employees, and access computers and data. This move aims to tighten the safety of Kenyans' cash and the country's financial ecosystem as mobile money platforms, digital banks, fintechs, and payment gateways process growing volumes of transactions.
The proposed bill gives the regulator power to direct the ouster of an officer or employee it considers to have caused or contributed to a breach or deterioration in the company's financial stability. This is part of a broader effort to strengthen the stability of Kenya's rapidly expanding digital payments sector. The CBK wants to ensure that payment service providers (PSPs) and payment system operators (PSOs) comply with the law and maintain financial stability.
Kenya has 43 CBK-licensed payment service providers as of June 2026, including top firms like M-Pesa, Airtel Money, Equitel, Pesapal, and Loop. The proposal is a shift from the existing 2011 law, which does not spell out whether CBK officials need to notify payment firms before raids. The Bill demands that companies assist CBK officials during inspections and makes it an offence to obstruct an officer, refuse to provide requested records or information, or provide false or misleading information.
The CBK would gain powers to intervene directly in the management of a payment company where it fails to meet obligations to customers, defaults on financial obligations to other payment providers or the apex bank, ignores a CBK directive, or breaches the proposed law. The CBK could also appoint a competent and suitably qualified person to the board of directors to hold office as a director. That director shall be protected from removal without CBK approval.
The proposed law expands grounds on which the CBK could suspend or revoke a payment licence, including failure to meet minimum capital or infrastructure requirements and failure to implement corrective measures ordered by the regulator. The CBK may suspend or revoke a licence granted under this Act if the payment service provider or payment system operator, without the approval of the Central Bank, amalgamates with another person, transfers, assigns or encumbers its licence to another person, and fails to manage its agents in a manner consistent with this Act.
The leading mobile money platform, Safaricom's M-Pesa, transacted Sh41.7 trillion in the year to March 2026. Kenya had 54 million mobile money subscriptions as of June 2026, up 13.2 percent from 47.7 million in June last year, according to data from the Communications Authority. The proposed powers would give the CBK tools to act before problems at a payment company threaten customers' cash or spread to other parts of the financial system.
The proposals mirror countries like Ireland, Thailand, and the UK, where regulators can access payment providers' premises, inspect records, and seize data unannounced. Rwanda's central bank can disqualify or request the immediate removal of a payment firm's CEO or director if they fail to uphold rules, go bankrupt, or are convicted of offences involving dishonesty or fraud. Kenya's Bill is undergoing public participation until October 9.
Key points
- CBK seeks powers to inspect digital payment firms and oust top executives
- Proposed bill aims to strengthen stability of Kenya's digital payments sector
- CBK proposes to suspend or revoke payment licences for non-compliance
