Kenya CBK Seeks Powers to Take over Struggling Fintechs

In Short

• The Central Bank of Kenya (CBK) wants legal powers to step into failing payment firms.
• The proposal sits in the draft National Payment System Bill, 2026.
• CBK could appoint a statutory manager and oversee a sale of the business.

What Happened

The Central Bank of Kenya (CBK) has proposed new rules that would let it take over struggling fintech payment companies and sell their businesses. The plan is included in the draft National Payment System Bill, 2026.

The bill would allow CBK to intervene when a payment service provider cannot meet its obligations. In plain terms, that is when a company cannot pay out or settle what it owes to customers, merchants, or other financial institutions.

CBK could also step in if a provider breaches regulatory requirements, ignores directives, or poses a risk to financial stability. Financial stability means the wider system keeps working, even if one firm fails, so people can still send and receive money.

Under the draft, CBK could remove existing managers and appoint a statutory manager. A statutory manager is an official appointed to run the company during distress, similar to an administrator brought in to prevent a messy collapse.

Why It Matters

Payments are a high-trust business. Many users rely on private firms to hold funds temporarily, move money between accounts, and settle merchant payouts.

If a payments provider fails suddenly, the impact can spread fast. Merchants may not receive sales proceeds, customers may be unable to transfer money, and partner banks or networks may be left with unsettled balances.

For founders and investors, the proposal signals tighter oversight of payment institutions and payment system operators. It could also change how failures are handled, moving from liquidation after the fact to earlier intervention while there are still assets and operations to preserve.

For customers, the goal is clearer. CBK is positioning itself to protect customer funds by stepping in earlier and controlling how a distressed payments business is managed or sold.