Fintechs looking to operate in Kenya’s payments industry could soon need significantly more capital, under new rules proposed by the country’s central bank.
The draft National Payment System Bill, 2026, sets minimum capital requirements ranging from KSh5 million ($38,610) for some payment services to KSh250 million ($1.93 million) for electronic money issuers.
The proposed thresholds would vary depending on the type of licence a company holds. Payment initiation and account information service providers would face a KSh5 million requirement, while payment gateways would need KSh10 million.
Money remittance providers would require KSh30 million, while merchant acquirers, electronic wallet providers, card scheme operators, and payment switching and clearing system operators would each need KSh50 million.
Electronic money issuers would face the highest threshold at KSh250 million.
The bill also sets out what companies can count towards their core capital. Paid-up ordinary share capital and disclosed reserves would qualify, while shareholder loans, advances and other borrowed funds would not be treated as paid-up capital.
That distinction could matter for smaller fintechs that rely heavily on shareholder funding or debt while developing their businesses. Under the proposed framework, companies would need to maintain the required level of core capital throughout their operations.
Existing payment providers would also have to adjust. The draft gives licensed firms one year from the law’s commencement to comply with the new requirements, subject to regulations issued by the Central Bank of Kenya (CBK).
The proposed capital rules form part of a broader overhaul of Kenya’s payments framework. The new bill would replace the existing National Payment System Act and introduce rules covering payment service providers, interoperability, consumer protection, data sharing and payment-system operations.
The CBK and National Treasury are currently seeking public comments on the draft bill and the accompanying National Payment System Policy. The proposed capital thresholds could therefore change before the legislation is passed into law.
