Kenya’s Central Bank Seeks Powers to Take Over Failing Fintechs

Kenya’s central bank is seeking expanded authority to take control of struggling payment companies under a proposed National Payment System Bill, 2026. The legislation would allow the Central Bank of Kenya (CBK) to intervene when providers fail to meet customer obligations, violate regulatory requirements, or threaten financial stability. The regulator could remove company officials, appoint statutory managers, restrict new business, and sell troubled providers’ operations. The proposed framework aims to protect customer funds and preserve viable businesses before financial problems worsen. The legislation would replace the 2011 National Payment System Act, introducing clearer registration and licensing rules for fintech startups and addressing regulatory uncertainty that has constrained industry expansion.