Kenya is moving to reshape its digital payments landscape through a proposed legal framework that could require banks and payment providers to share customer data with licensed third parties. The draft National Payment System Bill, 2026, developed by the National Treasury and the Central Bank of Kenya, introduces the foundation for open banking in one of Africa's largest digital payments markets. It seeks to let licensed fintechs access customer information with consent and compete without holding customer funds.
A New Legal Framework for Open Finance
The draft bill would repeal the National Payment System Act and create a modern legal framework for payment services. It empowers the Central Bank of Kenya to require payment service providers and system operators to use systems capable of securely sharing customer data for open finance purposes. The bill also leaves specific rules on access, conditions, and pricing to future CBK regulations.
Broader Policy Objectives
The policy aims to establish a safe, efficient, affordable and inclusive national payment system that supports seamless interoperability and innovation. The reform is designed to promote market integrity, competition, consumer protection and financial inclusion. It also addresses risk management, data protection and Kenya's integration into regional and global payment networks.
New Licensed Provider Categories
The bill introduces payment initiation service providers, which could execute payments on a customer's behalf, and account information service providers, which could aggregate data to give customers a single view across accounts. Neither category would be allowed to hold customer funds, unlike electronic money issuers and wallet providers. Those holding customer money would still be required to keep funds in trust accounts at a bank.
Competition and Customer Data
These new categories are central to the open finance push because they could reduce the dominance of banks and mobile money providers over customer relationships. Licensed fintechs would gain an opportunity to offer services using data that currently sits inside institutions and platforms such as M-PESA. The shift could turn existing customer data into a competitive battleground and widen consumer choice.
Interoperability Requirements
Beyond data sharing, the draft bill requires all financial and payment service providers to use systems that are compatible with competitors' platforms. This renewed interoperability push is intended to make payments more seamless and reduce friction for customers across different services. It complements the open finance provisions by ensuring that access and connectivity extend across the broader payments ecosystem.
Implementation Timeline
If parliament passes the law, any person providing payment services would have one year from commencement to comply. This transition period is meant to give banks, mobile money operators and other providers time to align their systems with the new requirements. The Central Bank of Kenya would then issue regulations to define the operational details and enforcement mechanisms.
Public Consultation and Next Steps
The National Treasury and the Central Bank of Kenya have issued a public notice inviting stakeholders to review the draft bill and policy documents. Comments can be submitted using templates made available for the National Payment System Bill and the Draft National Payment System Policy. This consultation phase signals that the specifics of open finance access, data protection and cost will be shaped partly by industry and public feedback.
Kenya's draft National Payment System Bill, 2026, represents a significant step toward open banking and a more competitive digital payments market. By enabling licensed third parties to access customer data with consent, the reform could reshape how payments, account information and related services are delivered. Its success will depend on the final regulations, stakeholder input and the readiness of established providers to embrace interoperability and data sharing.