Kenya could soon prohibit businesses from refusing cash payments for everyday transactions, under a proposed law that would require the acceptance of physical currency for purchases below Ksh100,000 (approximately US$775).
The Central Bank of Kenya (Amendment) Bill 2025, introduced by Suba South MP Caroli Omondi, seeks to make it illegal for businesses operating in physical locations to reject cash for transactions under the stated threshold.
As reported by TechCabal, Omondi said the legislation is intended to protect ordinary Kenyans who risk being excluded as the economy becomes increasingly digital.
If passed, the law would represent a major regulatory intervention in Kenya’s fast digitising payment environment, where mobile money platforms and card payments have become standard, even in small shops, restaurants and public transport.
Many businesses have adopted cashless systems to improve accountability and reduce theft, but the bill would force them to reconsider those practices.
“A majority of Kenyans still rely on cash transactions while some older people do not know how to use mobile money services, making it discriminatory to deny them access to services or buying goods in cash,”
Omondi stated.
The proposed legislation includes penalties for noncompliance, including fines of up to US$775 and potential civil liability if customers choose to take legal action after being denied service.
Although the Central Bank of Kenya has not publicly commented on the bill, it has long advocated for digital payments and supported market driven adoption.
Kenya’s digital payments market is projected to reach a value of US$14.5 billion by 2028.
The bill could clash with the government’s ongoing digital transition.
Currently, all public services, from national park fees to birth and death registrations and passport applications, are processed exclusively through the eCitizen platform, with many of these transactions costing less than US$20.
Omondi warned that an overreliance on digital transactions leaves the country vulnerable, citing the July 2024 IT outage in the US that disrupted electronic payment systems and halted routine transactions.
“Suddenly and without warning the exchange of goods and services stopped with the IT outage. Buyers were unable to effect cashless payments. Everyone was in need of immediate cash to make payments,”
he said.
The bill remains in its early stages and will undergo committee review and public consultation before being returned to Parliament for debate.
Featured image credit: Edited by Fintech News Africa, based on image by Freepik
