CBK Bill Sets Out 90-Day Takeover Powers for Troubled Payment Firms
Key Highlights
- A draft National Payment System Bill would let the Central Bank take control of a payment provider's assets after suspending or revoking its licence, to safeguard customer money.
- The proposal allows CBK to manage a provider for up to 90 days before appointing a statutory manager, while the bill also permits sale of its business.
- The draft remains a proposal, not law, and CBK says the new framework is intended to strengthen consumer protection and payment-system stability.
- For customers and merchants, the key issue is how the final law will protect balances and keep payments working if a licensed provider faces serious trouble.
A draft Kenyan payments law would give the Central Bank of Kenya (CBK) power to take control of a payment company's assets after suspending or cancelling its licence, with the stated aim of protecting customer money. The proposal also allows the bank to manage the provider for up to 90 days before appointing a statutory manager, and gives that manager powers to sell the business or its assets.
The provisions go further than routine supervision. They set out what could happen if a payment service provider or payment-system operator is no longer allowed to operate. The bill remains a proposal, however, and the powers would not become law simply because the draft has been published.
What the draft bill would allow
The National Payment System Bill, 2026, published by the Central Bank and the National Treasury for public consideration, sets out a sequence of intervention powers. Under clause 13, CBK would take control of a provider's assets after suspending or revoking its licence, to safeguard money belonging to customers and oversee the settlement of those funds.
The bill says CBK could manage and operate the provider for no more than 90 days before a statutory manager is appointed. Under clause 15, the bank would appoint that manager on or before the end of the period. The proposed statutory manager could then take control of assets, oversee customer-money settlement and manage the provider's affairs under the powers set out in the bill.
The draft also gives a statutory manager the power to sell or otherwise dispose of the provider's assets and business undertaking. It provides for the manager to take possession of assets and administer the settlement of customer funds. Those powers would be significant for owners, creditors, staff, merchants and customers, which is why the final wording and safeguards matter.
Why the proposal matters to customers
Payment firms sit between people and the businesses they pay. They may process merchant transactions, hold electronic money, move remittances or provide the technology that routes payments between accounts. If one fails, customers can face delays or uncertainty about access to funds while obligations are checked and settled.
The bill's stated purpose is to safeguard customer money and strengthen the safety and stability of the payment system. But taking control of a business does not by itself guarantee that every payment will continue uninterrupted. The draft also provides for a statutory manager to suspend payments to customers and other creditors in certain circumstances, with the suspension applying equally across creditor classes.
That makes the detail important. Customers will want clear communication about which funds are protected, how balances are reconciled, what happens to pending transactions and how quickly normal service could resume. Merchants will want to know whether card, wallet and bank-transfer payments will keep working during an intervention.
Mwenendo has previously reported on CBK's proposed wider powers over Kenya's payment companies. The new draft provisions specify the steps that could follow a licence suspension or revocation, including temporary control and the appointment of a statutory manager. They should be read alongside the existing framework, not as evidence that CBK has taken over any named fintech.
The proposal is not yet law
The Central Bank's public notice on the draft policy and bill says the proposed framework is intended to support a safe, accessible and inclusive payment system, competition, innovation and consumer protection. The bill proposes to replace the existing National Payment System Act, but it remains subject to the legislative process.
TechCabal reported on 12 October that CBK was seeking powers to take over struggling fintechs. The bill itself is the primary source for the specific provisions described here. The draft sets out the potential powers, but it does not establish that a particular payment company is struggling, insolvent or facing intervention.
For payment businesses, the proposal is a reason to review licensing, record-keeping, customer-fund arrangements and continuity plans. For users, it is a reminder to distinguish between a bill being proposed and a rule already in force. No takeover under these draft provisions is established by the publication of the bill alone.
The next steps are the consultation and legislative process, followed by any final law and implementing rules. The final framework will determine when intervention is permitted, what safeguards apply and how customers and creditors are treated if a provider's licence is suspended or revoked.
In Summary
- Which firms would be covered?
- The draft covers payment service providers and payment-system operators within the proposed National Payment System framework.
- What takeover power is proposed?
- After a licence suspension or revocation, CBK would take control of assets to safeguard customer money and could manage the provider for up to 90 days.
- Is the bill already law?
- No. The National Payment System Bill, 2026 is a draft and remains subject to the legislative process.
- Why does it matter to customers?
- The proposal sets out how customer funds and payment settlement could be handled if a provider's licence is suspended or revoked.
- What could a statutory manager do?
- The draft gives a statutory manager powers to take control of assets, oversee customer-money settlement and sell the provider's assets or business undertaking.