Central Bank of Kenya: Kenya EMI Minimum Capital Sh250mn Proposed

• The Central Bank of Kenya (CBK) Draft National Payment Bill, 2026 proposes a Sh250 million minimum capital requirement for Electronic Money Issuers (EMIs) like M-Pesa and Airtel Money.
• The Bill also sets new minimum capital thresholds for other payment service providers, including Sh50 million for card scheme operators and Sh10 million for payment gateways.
• A key provision mandates that all payment service providers and system operators must use interoperable systems with other market participants.
• The CBK will have the authority to approve voluntary interoperability arrangements and can also compel providers to enter such arrangements.

For legal professionals advising payment service providers in Kenya, these proposed changes, particularly the Kenya EMI minimum capital Sh250mn and the interoperability mandates, necessitate a thorough review of existing operational structures and financial planning.

The Central Bank of Kenya (CBK) has unveiled a significant regulatory proposal that would dramatically reshape the financial landscape for Electronic Money Issuers (EMIs) operating within the country. Under the provisions of the CBK Draft National Payment Bill, 2026, companies like M-Pesa and Airtel Money, which are prominent EMIs in Kenya, would be mandated to maintain a minimum capital of Sh250 million to secure and retain their operational licenses. This substantial Kenya EMI minimum capital Sh250mn requirement represents a core element of the proposed legislation, signaling a concerted effort by the Central Bank to bolster the financial stability and resilience of key players in the digital payments sector.

This draft Bill, currently under review, aims to introduce a comprehensive framework of new capital requirements specifically targeting various categories of payment service providers across Kenya. The proposed changes are designed to ensure that entities handling significant volumes of electronic transactions possess adequate financial backing, thereby safeguarding consumer funds and promoting overall market integrity. The focus on increasing capital thresholds for Electronic Money Issuers Kenya underscores the growing importance and systemic relevance of these platforms in the nation's economy.

Beyond the stringent demands placed on EMIs, the proposed legislation extends its reach to a broader spectrum of payment service providers, establishing varying capital benchmarks for different operational roles. Should the CBK Draft National Payment Bill, 2026 be enacted, several other critical components of the payment ecosystem will face new financial prerequisites for obtaining their necessary licenses. Specifically, entities involved in card scheme operations, merchant acquiring services, and payment switching and clearing functions will each be required to hold a minimum capital of Sh50 million.

Further down the scale, money remittance service providers are slated to require at least Sh30 million in capital. Operators of payment messaging systems would need to demonstrate Sh20 million, while payment gateways, which facilitate online transactions, would be subject to a Sh10 million minimum capital threshold. In addition to these financial stipulations, the draft Bill introduces a crucial mandate concerning Kenya payment system interoperability. It stipulates that all payment service providers and payment system operators must utilize systems capable of seamless interaction with those employed by other providers, operators, and their respective agents, fostering a more integrated and efficient digital payment environment.

The proposed interoperability requirements outlined in the CBK Draft National Payment Bill, 2026 grant the Central Bank of Kenya payment regulations significant authority over how payment systems connect and function. While payment service providers and operators are permitted to voluntarily establish interoperability arrangements with their counterparts and agents, such agreements would necessitate the prior approval of the Central Bank. More critically, the Bill empowers the Central Bank to proactively intervene and mandate interoperability. Through official notice, the CBK can compel any payment service provider or payment system operator to enter into an interoperability arrangement with other providers, operators, and their agents.

This dual approach, allowing for both voluntary, approved arrangements and mandatory directives, highlights the CBK's intent to ensure robust Kenya payment system interoperability across the financial sector. For legal professionals advising payment service providers in Kenya, these proposed changes, particularly the Kenya EMI minimum capital Sh250mn and the interoperability mandates, necessitate a thorough review of existing operational structures and financial planning. Compliance with these new Central Bank of Kenya payment regulations will be paramount for clients seeking to maintain their licenses and competitive standing in a rapidly evolving digital payments landscape.

Lawyers advising payment service providers in Kenya should closely monitor the progress of the CBK Draft National Payment Bill 2026, as its proposed capital and interoperability requirements will necessitate strategic planning and potential operational adjustments for their clients to maintain compliance and licenses.

Source: Original reporting via Capital FM