Kenya’s Proposed National Payment System Framework: What Fintechs Need to Know
Fintech | Payments | Regulatory Advisory
The National Treasury and Central Bank of Kenya have developed a Draft National Payment System Policy and National Payment System Bill, 2026, proposing a modernised legal framework for Kenya’s national payment system.
The proposed framework addresses areas including interoperability, competition, innovation, consumer protection, data protection, market integrity and financial stability. The proposed Bill would repeal and replace the existing National Payment System Act framework if enacted.
For fintechs, payment service providers and technology businesses, developments in this area deserve close attention.
Businesses should consider
- Whether their activities fall within the proposed regulatory framework;
- How proposed licensing and compliance requirements may affect operations;
- Consumer and data-protection obligations;
- Payment-system interoperability and access;
- Governance and risk-management requirements; and
- The potential impact on new payment products and business models.
Legal Insight: Regulatory developments should be considered early when designing or expanding financial technology products. Early legal review can help businesses identify licensing, contractual and compliance issues before they become operational problems.
Recommended source link:
Central Bank of Kenya — Draft National Payment System Policy & Bill 2026
Supporting document:
Draft National Payment System Policy 2026 — CBK