Central Bank of Kenya seeks takeover powers for fintechs

The Central Bank of Kenya (CBK) is pursuing expanded powers to take over struggling payment companies and sell their businesses as part of the draft National Payment System Bill, 2026. This legislation would empower CBK to intervene when a payment service provider fails to meet obligations to customers or other financial institutions, breaches regulatory requirements, or poses a threat to financial stability.

The proposed measures would position CBK at the forefront of resolving failures in the fintech sector, where customers depend on private companies for managing their funds. The bill allows CBK to remove company officials deemed responsible for a company's decline, appoint a statutory manager, and restrict the firm from taking on new business.

The draft states that the powers of directors and significant shareholders would cease upon the manager's appointment, except where permitted by the manager. This intervention aims to protect customer money and maintain public confidence in the financial system.