Kenya is proposing new capital requirements of up to KES 250 million ($1.93 million) for payment companies, raising the cost of entry for fintechs seeking to compete in the country’s payments market.
Under the National Payment System Bill, 2026, the Central Bank of Kenya (CBK) is establishing mandatory minimum capital thresholds ranging from KES 5 million ($38,610) for basic data services to KES 250 million ($1.93 million) for electronic money issuers. Existing payment providers will have one year from the law’s enactment to align with the new capital rules, subject to CBK guidelines.
The proposed rules could make it harder for early-stage and bootstrapped fintechs to enter the market, particularly because the bill excludes shareholder loans, convertible debt, and other borrowed funds from qualifying as core capital.
Commercial banks, meanwhile, enjoy simplified central bank authorisations and pre-existing reserves, handing established players a decisive market advantage.
Originally published by TechCabal.