Public comments on the Kenya Payment System Bill close on October 9, marking the final scheduled day for input on a proposed rewrite of the country’s payments law. The National Treasury and Central Bank of Kenya opened the consultation on September 21.

The draft would replace the National Payment System Act, Cap. 491A, and broaden the framework governing payment providers and infrastructure. It places licensing, interoperability, open finance, consumer protection, data safeguards and financial stability under an updated regulatory structure.

Key Insights

  • The Kenya Payment System Bill consultation closes on October 9 after nationwide public-participation forums.
  • The draft covers electronic payments, e-money, payment initiation, account information services, messaging systems and card schemes.
  • The proposal is not yet law, and its final text may change after officials review public submissions.

Kenya Payment System Bill Consultation Ends October 9

The Central Bank of Kenya said comments must reach the regulator on or before Friday, October 9. The public notice allowed submissions by email, post or hand delivery and scheduled participation forums across multiple counties.

The consultation began on September 21, making the deadline the current event rather than the draft’s original publication date. The proposal’s stated objectives include safer payments, stronger market integrity, greater competition, financial inclusion and more effective risk management.

Licensing and Open Finance Take Center Stage

The Kenya Payment System Bill would apply to businesses that send, receive, store or process electronic payments. Its scope also includes e-money issuance and redemption, payment messaging, payment initiation, account information services, payment systems, payment instruments and card schemes.

The draft creates operating provisions for market conduct, interoperability, open finance, outsourcing, agents, disclosures and Central Bank system audits. Separate sections address trust accounts, the protection of customer balances, payment finality, cross-border transfers and transaction traceability.

The framework also gives the Central Bank enforcement powers and provides for a regulatory sandbox. Proposed schedules set licence categories, suitability tests, minimum capital requirements and trust-fund limits, although those details remain subject to the legislative process.

What Payment Firms and Users Should Watch Next

Payment companies will need to watch whether the final bill preserves its broad service definitions and how regulators calibrate capital, trust-account and interoperability obligations. Consumers should focus on the final provisions covering disclosures, data use, customer funds, transaction traceability and complaints.

The proposal is distinct from Kenya’s recent Treasury bond switch, which dealt with sovereign debt rather than payments regulation. It also differs from the EU stablecoin compliance window and the American Express AML enforcement action, both of which involved different jurisdictions and regulatory triggers.

The next observable catalyst is the government’s response to consultation feedback, followed by any revised bill and its parliamentary timetable. Until that process advances, payment firms should treat the licensing and capital provisions as proposals rather than final obligations.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.