- The Committee on Finance and National Planning of the National Assembly has approved the Central Bank of Kenya (Amendment) Bill, 2025.
- The suggested change would oblige companies to take cash for in-store purchases up to KSh 100,000 and prevent them from imposing additional fees on customers who pay in cash.
- Members have suggested changes to grant exemptions to certain businesses based on the business setting and additional considerations.
Elijah Ntongai, a journalist with zaia news.co.ke, brings more than four years of expertise in analyzing and reporting on financial, business, and technological developments, offering perspectives on trends across Kenya, Africa, and the world.
The Finance and National Planning Committee of the National Assembly has shown its support for the Central Bank of Kenya (Amendment) Bill, 2025.
The latest bill aims to require all companies to allow cash payments for products and services, and impose fines on businesses that decline such transactions.
The legislative committee has suggested the release of the Central Bank of Kenya (Amendment) Bill, 2025, designed to modify the Central Bank Act (Cap 291).
This will guarantee that cash continues to be widely recognized as a valid method of payment, even while utilizing government services.
What impact will the upcoming legislation have on cash transactions?
The suggested changes will require companies that carry out face-to-face transactions to accept cash for amounts up to KSh 100,000 and prevent them from imposing additional costs on customers who choose to pay using physical currency.
"This legislation will guarantee that cash remains acknowledged as legal currency and that no individual is put at a disadvantage for opting to use it," stated committee Vice Chairperson Benjamin Langat, who oversaw the discussions.
Langat highlighted that it is illegal for companies to refuse cash since the Kenyan shilling is the nation's officially recognized legal currency.
"All payment methods need to be accessible, whether through cards, mobile money, or cash, ensuring that everyone can make transactions, including individuals with disabilities," said Langat, as reported by Daily Nation.
The legislation also imposes a penalty of as much as KSh 100,000 on companies that do not adhere to the regulations.
Homa Bay Town MP Peter Kaluma supported the initiative, highlighting that rejecting cash is discriminatory and unjust for numerous Kenyans who cannot or do not wish to use only digital payment methods.
Parliamentarians suggest modifications to the CBK amendment bill
Nevertheless, the committee suggested a number of changes to the proposed legislation prior to its release. Among these are exceptions for companies functioning in high-risk zones where keeping substantial amounts of cash might present a safety risk.
Furthermore, Huduma Centres and other government service locations would be permitted to implement cashless systems, provided that individuals do not have specific circumstances that hinder the use of mobile or digital payments.
Members of parliament also suggested modifications that would facilitate cashless payments when handling amounts exceeding KSh 500,000.
The Bill, backed by Suba South MP Caroli Omondi, is now set to be sent to the Speaker of the National Assembly for official release and presentation for its initial debate in Parliament.
If enacted, the law will indicate a change in Kenya's developing payments environment, given the extensive use of digital payment systems, especially mobile money transactions.