CBK Proposes Open Banking Rules in Payments Bill 2026

In Short: CBK Open Banking And Payment Licensing Changes

Central Bank of Kenya (CBK) has proposed new rules under the National Payment System Bill, 2026. The draft would set an open banking framework, require interoperable APIs, and update licensing and capital requirements for payment firms.

What Happened: How The National Payment System Bill, 2026 Works

CBK published the draft legislation for public consultation on September 21, 2026. The bill is intended to replace the existing legislation governing electronic payment services.

The draft introduces an open banking framework. In simple terms, open banking is a set of rules that lets authorised fintech providers access customer financial information securely, as long as the customer gives consent and data protection requirements are met.

The proposal would require payment service providers and payment system operators to adopt interoperable technologies. This includes open application programming interfaces, called APIs, which are standard connections that let different systems talk to each other. It also includes recognised financial messaging standards.

CBK proposes two new categories of providers. Payment Initiation Service Providers, or PISPs, would facilitate payments on behalf of customers. Account Information Service Providers, or AISPs, would aggregate financial information from multiple accounts to offer consolidated financial management services. The draft says neither category would be allowed to hold customer funds directly.

The draft also revises licensing requirements. Minimum capital thresholds would range from KSh 5 million for certain specialised providers to KSh 250 million for electronic money issuers. Companies operating under multiple licence categories would face additional capital requirements based on their activities.

CBK would also get stronger supervisory powers, including authority to inspect operators, restrict certain activities, and intervene in businesses facing serious regulatory difficulties. Existing providers would have a 12-month transition period to comply once the legislation becomes law. The public consultation period closed on October 9, 2026, and the proposal still requires further legislative approval.

Why It Matters: More Competition, More Compliance Work

If adopted, the framework could make it easier for fintech startups to build tools like financial management apps, payment initiation products, and alternative credit assessment solutions. At the same time, it places more emphasis on cybersecurity, customer consent, and compliance with Kenya’s data protection legislation, which could increase the cost and effort needed to operate.