Regulatory AlertsKenya: fintech & payments regulation
RegulatedVASP licensing via CMA/CBK under 2025 Act; CBK governs payments
- Lead regulator
- Central Bank of Kenya (CBK)
- Also involved
- CMA (crowdfunding, VASPs) · NFIU (AML reporting)
- Core law
- National Payment System Act, 2011
- Entry capital
- KES 10m (Payment Service Provider)
- Approval timeline
- 3-6 months for PSP authorization
- Customer assets
- Segregated trust account required
- Data protection
- Data Protection Act, 2019 · ODPC
- Sandbox
- Yes - CBK Regulatory Sandbox
Kenya maintains a robust, dual-supervision fintech landscape. The Central Bank of Kenya (CBK) regulates payment services, e-money, and digital credit under the National Payment System Act. The Capital Markets Authority (CMA) regulates investment-based crowdfunding and, as of late 2025, Virtual Asset Service Providers (VASPs) jointly with the CBK. The regulatory direction is towards stricter AML/CFT compliance and formalization of the digital credit and crypto sectors.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Service Provider (PSP) License[1][2] Requires ISO 20022 migration compliance | KES 10m | 3-6 months | Central Bank of Kenya |
| E-money & wallet issuance | LicencePayment Service Provider (PSP) License[1] Mobile money wallets require CBK authorization | KES 10m | 3-6 months | Central Bank of Kenya |
| Domestic money transfer | LicencePayment Service Provider (PSP) License[1] Domestic transfers fall under PSP framework | KES 10m | 3-6 months | Central Bank of Kenya |
| Cross-border remittance | LicenceMoney Remittance Provider License[3][4] Cross-border remittance requires specific MRPS license | KES 10m | 3-6 months | Central Bank of Kenya |
| Agent network | LicencePayment Service Provider (PSP) License[1] Agent networks must be authorized under PSP license | KES 10m | 3-6 months | Central Bank of Kenya |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework yet | — | — | — |
| Foreign-exchange services | LicenceForex Bureau License Online FX trading regulated by CMA | KES 10m | 3-6 months | Central Bank of Kenya |
New — what changed recently
- 2025-11-04Virtual Assets Service Providers Act, 2025 — Established mandatory licensing for VASPs under CMA/CBK oversight.[5][6]
- 2024-09-11KEPSS ISO 20022 Migration — Mandated migration of domestic high-value payment system to ISO 20022 standards.[2][7]
- 2023-11-08AML/CFT Amendment Act 2023 — Strengthened AML/CFT obligations and CDD/EDD requirements for financial institutions.[8]
Market-entry checklist
- 1Incorporate company and reserve nameRegister with Registrar of Companies and obtain name approval from CBK.
- 2Meet minimum capital requirementDeposit KES 10m for standard PSP authorization.
- 3Submit business plan and governance docsProvide detailed program of operations and fit-and-proper declarations.
- 4Implement AML/CFT frameworkEstablish CDD/EDD procedures compliant with POCAMLA amendments.
- 5Apply for PSP licenseSubmit formal application to CBK Bank Supervision Department.
Sources
- National Payment System Regulations 2014 · 2018-12-31
- Microfinance Banks Circular No. 1 of 2024 - Migration of Domestic High Value Payment System to ISO 20022 Standards · 2024-09-11
- Steps In Licensing Money Remittance Providers (MRPS) · 2014-03-27
- The Money Remittance Regulations 2013 · 2013-04-26
- Commencement of the Virtual Assets Service Providers Act, 2025 · 2025-11-18
- Virtual Asset Service Providers Act, 2025
- Banking Circular No. 2 of 2024 - Migration of Domestic High Value Payment System to ISO 20022 Standards · 2024-09-11
- Central Bank of Kenya Circular No. 13 of 2023 - Highlights of the AML CFT (Amendment) Act 2023 · 2023-11-06