Central Bank of Kenya proposes new National Payment System Bill

The Central Bank of Kenya (CBK) and the National Treasury have released the draft National Payment System Bill, 2026, for public comment. The proposed legislation seeks to modernize Kenya’s payments framework by repealing the existing National Payment System Act of 2011.

The new bill aims to establish a secure, efficient, and inclusive national payment system that promotes interoperability and integrates Kenya into regional and global markets. Key objectives include fostering innovation, competition, and financial stability through enhanced risk management and data protection.

Under the proposed rules, digital wallet providers and electronic money issuers must hold client balances in ring-fenced trust accounts at licensed commercial banks, separate from corporate funds. To mitigate systemic risk, no single bank may hold more than Ksh500 million or 25 percent of a provider’s total trust funds. The bill also introduces a licensing system for payment service providers and grants the CBK broad regulatory and enforcement powers. Non-compliance could result in penalties of up to Ksh20 million, rising to Ksh30 million for repeat offenses, plus daily fines.