Kenya Proposes New National Payment System Law: What It Could Change for Mobile Money and Fintech
By Faith Jepkirui | October 1, 2026
Kenya is considering a major overhaul of the legal framework governing mobile money, payment service providers and digital payment infrastructure through a new draft National Payment System Policy and National Payment System Bill, 2026.
What the Draft Law Is Trying to Do
The National Treasury and Central Bank of Kenya say the proposed framework is intended to create a safer, more efficient and more inclusive payment system while supporting innovation and competition.
The draft Bill would replace the existing National Payment System Act and broaden regulation around payment providers, system operators, electronic money and emerging financial technologies.
Why Interoperability Matters
One of the policy’s central goals is interoperability — the ability for different payment platforms and providers to work together more seamlessly. For consumers and businesses, better interoperability can reduce friction when moving money across banks, mobile wallets and other digital platforms.
Consumer and Data Protection
The draft framework also places emphasis on consumer protection, data safeguards, market conduct and risk management. These issues have become more important as Kenya’s payment ecosystem has expanded beyond traditional banks and mobile network operators.
What Businesses Should Watch
- New licensing or compliance requirements for payment providers.
- Rules on customer funds and trust arrangements.
- Interoperability obligations between platforms.
- Consumer complaint and disclosure standards.
- Cybersecurity and operational risk requirements.
The Proposal Is Not Yet Law
The documents are still in draft form and are undergoing public consultation. Businesses should therefore avoid treating every provision as final until the legislative process is complete.
Why the Current Law Is Being Revisited
Kenya’s payments market has changed substantially since the existing framework was enacted. Mobile wallets, digital lenders, payment aggregators, fintech platforms and cross-border services now handle transactions that were once concentrated in banks and mobile-network operators.
What Better Interoperability Could Mean in Practice
If implemented effectively, stronger interoperability could make it easier for customers to move money between banks, wallets and payment platforms without being locked into one ecosystem. The final cost to consumers would still depend on commercial pricing, regulatory rules and how providers implement the standards.
What Providers May Need to Prepare For
Payment businesses may need to review licensing, safeguarding of customer funds, cybersecurity, complaint handling, data governance and business-continuity arrangements. Smaller fintech firms will be watching closely to see whether compliance requirements are proportionate to their size and risk profile.
The consultation stage matters because the final law can change from the draft. Businesses and consumer groups therefore have an opportunity to raise practical concerns before Parliament considers a final legislative text.
