Raising money for a Kenyan payments startup could soon take longer. The draft National Payment System Bill, 2026 would require any investor acquiring at least 10% of a licensed payment service provider or payment system operator to get written approval from the Central Bank of Kenya first, TechCabal reports.
"A significant change of ownership of a licensed payment service provider or a licensed payment system operator shall be subject to the prior written approval of the Central Bank," clause 58 of the bill states, according to TechCabal. New significant shareholders would be vetted like existing ones.
The timing problem
The bill does not say how quickly the CBK must decide. An investor could commit money on condition of approval, leaving a startup unable to count on the cash until it comes through. A company with little runway would need to start raising earlier or find bridge funding.
"Ultimately, I think it raises the bar for investment opportunities in Kenya," Agnes Aistleitner, managing partner of First Circle Capital, told TechCabal.
Capital rules on top
The bill also proposes minimum capital of KES 250 million ($1.9 million) for electronic money issuers and KES 50 million for wallet providers, with existing firms given a year to comply. Shareholder loans and unpaid commitments would not count towards that capital, so a stopgap loan would not meet the rule.
Kenya's 2014 rules already require approval of significant shareholders, at a 5% threshold for unlisted providers, TechCabal notes. The new bill raises that threshold to 10% but makes approval a condition of closing the deal.
