Prepared by the Treasury and the Central Bank of Kenya, the National Payment System Bill, 2026 would replace the 2011 Act and broaden supervisory powers, including authorising CBK officers to enter payment service providers’ or system operators’ premises with or without notice.

During an inspection, officers may retain books, accounts, documents, equipment and other records, while providers and their staff must cooperate, answer questions and supply information on request.

Refusing to answer lawful queries, obstructing an officer, providing false information, tampering with seized records or otherwise hindering an inspection would constitute an offence under the Bill.

Beyond routine supervision, the Bill permits CBK to intervene in a provider’s management if it breaches obligations, defaults on financial duties, ignores a regulator directive or threatens financial stability, including the power to remove officers or appoint a statutory manager.

A statutory manager may serve an initial term of up to 12 months, with a possible High Court‑approved extension of another 12 months, taking control of assets to safeguard customer money and oversee settlement of funds.

The Bill distinguishes between payment service providers (PSPs) that issue or process electronic money and payment system operators (PSOs) that run the underlying infrastructure, extending supervision to both the firms and any parent or related groups.

Licensing requirements are tightened, covering governance, market conduct, interoperability, open finance, outsourcing, agent oversight, system audits, trust‑account arrangements and cross‑border payments.

The draft retains trust‑account safeguards, noting that about KSh250 billion of M‑Pesa customer funds were held in trust as of the latest CBK figures, underscoring the scale of money that must be protected.

Public participation on the Bill remains open until 9 October 2026, allowing banks, fintechs, consumer groups and other stakeholders to comment on the proposed powers before the legislation proceeds.