Introduction

Kenya's Central Bank is proposing new rules that would require banks and payment providers to share customer data with licensed third parties, marking a significant shift toward open banking in East Africa's largest economy. The draft legislation signals a move away from the current model where financial institutions tightly control customer information.

What Happened

The Central Bank of Kenya (CBK) has introduced the National Payment System Bill, 2026, which would legally require payment service providers to build systems capable of securely sharing customer data. Spearheaded by CBK Governor Kamau Thugge, the bill creates two new categories of licensed fintechs: payment initiation service providers and account information service providers. The measure aims to open up data that has long been locked inside banks and mobile money platforms like M-PESA.

Why This Matters

If enacted, the bill would break banks' and mobile money operators' tight control over customer data, enabling licensed fintechs to access information and compete for users without holding accounts. The move could accelerate financial inclusion, drive innovation, and position Kenya as a regional leader in open banking. However, the bill leaves critical details—such as exactly which data can be shared, under what conditions, and at what cost—to be defined in future CBK regulations.

Key Takeaways

  • The draft bill would require payment providers to build secure data-sharing systems for open finance purposes.
  • Two new licensed categories—payment initiation and account information providers—would gain access to customer data.
  • Electronic money issuers and wallet providers must keep customer funds in bank trust accounts.
  • Full compliance requirements would be determined by future CBK regulations.
  • Licensed providers must meet a one-year compliance window after the bill passes parliament.
  • The legislation also pushes for broader system interoperability across financial services.

Conclusion

Kenya's proposed data-sharing mandate could fundamentally redefine the relationship between banks, mobile money operators, and fintechs. While the bill's full implementation details remain pending, its passage would mark a significant step toward a more open, competitive, and inclusive digital payments ecosystem in East Africa.