Kenya proposes up to $1.93m capital requirement for payment firms
The proposed rules could make it harder for early-stage and bootstrapped fintechs to enter the market.
The Central Bank of Kenya is seeking to impose capital requirements of up to $1.93 million on payment firms, as outlined in the National Payment System Bill, 2026. The bill sets different minimum core capital requirements based on the type of payment service a company provides. The lowest threshold is KES 5 million, or approximately $38,610, for basic data services.
At the other end, electronic money issuers would need to maintain a minimum capital of KES 250 million, or around $1.93 million. Existing payment providers have been given one year from the law's enactment to adhere to these new capital rules, though the specifics of compliance are subject to guidelines set by the CBK. This new regulation, which excludes certain forms of borrowed funds from qualifying as core capital, could pose a significant hurdle for newer or bootstrapped fintechs looking to enter the Kenyan market.
Established players, such as commercial banks, will enjoy more straightforward authorizations and existing reserves, creating a notable competitive advantage over emerging competitors.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
