Kenya’s new payment bill may slow fintech funding as CBK seeks tighter control

Kenya’s draft National Payment System Bill, 2026 would require anyone buying 10% or more of a licensed payment service provider or payment system operator to get written approval from the Central Bank of Kenya before the deal can close. The same regulatory vetting that applies to banks would also cover significant shareholders, and the bill adds a minimum capital rule: KES 250 million (about $1.9 million) for electronic money issuers and KES 50 million (about $385,000) for wallet operators, with existing firms given one year to comply. Shareholder loans or advances would not count toward paid‑up capital, and the bill would also require CBK approval for any merger, acquisition or exit involving a payment company.

For Nigerian investors and founders who look to Kenya as a gateway to East African markets, the change means fundraising could take longer because deals become contingent on a central bank decision whose timing is not specified. Agnes Aistleitner of First Circle Capital warns the move adds complexity and cost to investing in Kenya, a market that already offers limited returns outside Safaricom and a few other players. At the same time, the bill aims to replace a fragmented set of rules with clearer licences, which could reduce uncertainty about who is allowed to operate and promote competition against banks and telcos.

If you are considering a Kenyan fintech partnership, fundraising round or exit, you should factor in extra time for regulatory approval, explore bridge financing to cover any waiting period, and start preparing ownership and governance documents early. Will the promise of a more transparent system outweigh the added delay and cost for your investment plans?

SOURCE: https://techcabal.com/2026/10/15/kenyas-fintech-reforms-delay-investment/