CBK Seeks More Power Over Kenya's Payment Companies

The Central Bank of Kenya is seeking powers to inspect payment companies, demand supervisory information and issue directions where firms create serious financial or systemic risks.

CBK and the National Treasury published the draft National Payment System Policy and Bill 2026 on 1 October. The proposed replacement for the 2011 law remains under consultation, so payment providers are not yet subject to these new powers.

For cross-border users, the proposed payments rules sit alongside the local-currency settlement networks used in African trade.

The powers being proposed

The draft bill allows CBK to issue directions to payment service providers and payment-system operators where it establishes that a firm is creating, or is likely to create, instability or systemic risk.

The bill also provides for on-site inspections and off-site supervision. CBK could require providers to produce documents or information needed for its supervisory work.

The proposed framework covers significant shareholders, beneficial owners, directors and senior officers. CBK would be able to assess whether proposed significant shareholders and senior officers meet fit-and-proper requirements.

These are proposed powers. They are not yet new rules applying to payment companies.

Why the change matters

Kenya's payments system covers bank transfers, cards, mobile money and other electronic payments used by consumers and businesses every day.

CBK says the national payment system includes commercial banks, financial institutions, payment service providers and government. It operates both large-value systems and retail systems used for everyday payments.

A stronger supervisory framework could give the regulator more information and more options when a payment company develops operational, financial or consumer risks.

For payment businesses, stronger oversight could mean more reporting, governance, data-control and risk-management work if the bill becomes law. For consumers, CBK says the policy aims to improve safety, competition, financial inclusion and confidence in payment services.

The proposed replacement law

The bill proposes to repeal the National Payment System Act, 2011 and establish a new legal framework. CBK says the policy is intended to support interoperability, innovation, economic growth and Kenya's integration into regional and global payment systems.

The draft also covers anti-money-laundering obligations, supervision and enforcement. It therefore seeks to update the rules around an industry that has expanded considerably since the current law was introduced.

CBK's payments framework explains the role of payment providers in the wider financial system.

The consultation stage

The bill is still under consultation. CBK has published the draft policy, draft legislation and a template for public comments.

Payment companies, banks, fintechs, consumer groups and other stakeholders can make submissions before the final framework is adopted.

For businesses, the immediate task is to assess the proposed obligations rather than assume they are already in force. For customers, the existing payment framework remains in force while the proposed replacement is considered.

The development is therefore a proposed redesign of Kenya's payment regulation, not a new rule taking effect today.