Kenyan MPs Back Proposed Law to Punish Businesses Rejecting Cash Payments
- The National Assembly's Finance and National Planning Committee has endorsed the Central Bank of Kenya (Amendment) Bill, 2025
- The proposed amendment will require businesses to accept cash for in-person transactions of up to KSh 100,000 and bar them from charging higher prices to customers paying with cash
- MPs have recommended amendments to exempt some businesses depending on the business environment and other factors
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The National Assembly's Finance and National Planning Committee has thrown its weight behind the Central Bank of Kenya (Amendment) Bill, 2025.
Source: UGC
The new legislative proposal seeks to compel all businesses to accept cash as a mode of payment for goods and services and establish penalties for firms that refuse cash transactions.
The parliamentary committee has recommended the publication of the Central Bank of Kenya (Amendment) Bill, 2025, which aims to amend the Central Bank Act (Cap 291).
This will ensure that cash remains a universally accepted form of payment, even when accessing government services.
What will the new law do to cash payments?
The proposed amendments will mandate businesses conducting in-person transactions to accept cash for payments of up to KSh 100,000 and prohibit them from charging higher prices to customers who opt to pay with notes and coins.
“This bill will ensure that cash continues to be recognised as legal tender and that no citizen is disadvantaged for choosing to use it,” said committee vice chairperson Benjamin Langat, who chaired the deliberations.
Langat emphasised that it is unlawful for businesses to reject cash when the Kenyan shilling is the country’s recognised legal tender.
“All payment options should be available, whether card, mobile money, or cash, so that everyone can transact, including persons with disabilities,” added Langat as reported by Daily Nation.
The bill also introduces a fine of up to KSh 100,000 for businesses that fail to comply with the law.
Homa Bay Town MP Peter Kaluma backed the proposal, noting that refusal to accept cash is discriminatory and unfair to many Kenyans who are unable or unwilling to rely solely on digital payment systems.
MPs recommend changes to CBK amendment bill
The committee, however, recommended several amendments to the proposed law before it is published.
These include exemptions for businesses operating in high-risk areas where holding large sums of cash could pose a security threat.
Additionally, Huduma Centres and other government service points would be allowed to maintain cashless systems unless individuals have special conditions preventing mobile or digital payments.
The MPs also recommended changes that will allow cashless transactions when dealing with more than KSh 500,000.
The bill, sponsored by Suba South MP Caroli Omondi, will now be forwarded to the Speaker of the National Assembly for publication and introduction for its first reading in Parliament.
If passed, the law will signal a shift in Kenya’s evolving payments landscape, considering the widespread adoption of digital payment methods, particularly mobile money transfers.
Mobile money adoption in Kenya
In other news, M-Pesa reported that it has reached around 100 million transactions daily at its current 4000 transactions per second capacity.
Additionally, Airtel Money has recorded significant growth in Kenya, gaining 3.7 million subscribers.
Airtel Money increased its market share to 8.9% in the second quarter of the 2024/25 financial year, according to data from the Communications Authority of Kenya (CA).
Airtel attributed its gains to improved interoperability, enabling Kenyans to send money and make payments across networks with ease, which offers consumers an alternative to Safaricom’s dominant M-Pesa platform, which boasts 34 million users.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
