The Central Bank of Kenya proposed fresh financial rules to enhance data exchange among banks, fintech firms, and mobile money providers, which could reshape competition in the nation’s digital payments sector.
The proposed changes are part of the National Payment System Bill, 2026, which seeks to replace the existing legislation governing electronic payment services.
On September 21, 2026, a draft of the legislation was made available for public comment, outlining a framework for open banking that enables secure access to customer financial data by authorized fintech providers, with proper consent and data protection.
Payment service providers and operators would need to implement compatible technologies, such as open APIs and standardized financial messaging, under the proposed plan.
This could allow fintech firms to create new services without relying on established financial institutions’ proprietary infrastructure, driving innovation.
The framework introduces two new categories of financial service providers: Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs). PISPs would facilitate payments on behalf of customers, while AISPs would aggregate financial information from multiple accounts to provide consolidated financial management services. Neither category would hold customer funds directly.
Licensing requirements are also revised, with minimum capital requirements ranging from KSh 5 million to KSh 250 million, depending on the type of provider, and additional requirements for businesses operating under multiple licenses.
The central bank‘s oversight of payment companies would be strengthened, with increased authority to inspect, restrict, and intervene in businesses facing regulatory challenges, promoting competition and stability.
Financial service providers already in operation would have 12 months to comply with the new regulations once they are enacted.
Emphasis is placed on cybersecurity, customer consent, and adherence to Kenya’s data protection laws in the proposed framework.
The public consultation period closed on October 9, 2026, but the proposal requires further legislative approval. If adopted, the reforms could reshape Kenya’s digital financial services market by encouraging competition while introducing stronger regulatory oversight.
This shift mirrors global trends toward open banking, as seen in the European Union and United Kingdom, where similar frameworks have spurred innovation while raising questions about data security and consumer protection.