Kenya is preparing to overhaul the rules governing its rapidly expanding digital payments industry, with a proposed payments bill that could require banks and other payment providers to build systems capable of securely sharing customer data with authorised third parties.
The proposed National Payment System Bill, 2026, developed by the National Treasury and the Central Bank of Kenya (CBK), is designed to replace the 2011 National Payment System Act. The draft is part of a broader effort to create a more interoperable, competitive and secure payments ecosystem.
One of the bill’s most consequential provisions is its approach to open finance. The draft says payment service providers and payment system operators must use systems capable of securely sharing customer data with third parties for open-finance purposes. The CBK would also have authority to require providers to enter into such arrangements, while detailed regulations would determine how the framework operates.
This could significantly change how financial data is controlled in Kenya.
Today, customer information is largely held within individual banks, mobile-money platforms and other financial institutions. An open-finance framework could allow customers, with the appropriate consent and safeguards, to permit licensed third-party services to access information held across different providers.
For fintech companies, that could create opportunities to build products around a more complete picture of a customer’s finances. Services could include financial-management tools, alternative credit assessment, account aggregation and personalised financial products.
The bill also introduces a stronger emphasis on interoperability. Payment providers and operators would be expected to use systems that can work with those of other providers. The CBK could require interoperability arrangements where necessary.
The proposal therefore goes beyond data sharing. It seeks to make Kenya’s payments infrastructure more connected, potentially reducing the barriers between banks, fintechs and other payment platforms.
However, opening financial data also raises questions about privacy and security. The draft bill explicitly requires payment providers to protect customer data from loss, unauthorised use and unauthorised disclosure. Providers would also face requirements around consumer information, complaint handling and safeguarding customer funds.
The details will matter. The draft policy calls for clear open-banking and data-sharing regulations that balance innovation and competition with data privacy. It also proposes continued development of interoperable infrastructure and an instant-payment system.
Importantly, the legislation is still a draft. The CBK published the proposed bill and policy on September 21, 2026, inviting public comments. It therefore does not yet create a legal obligation for banks to share customer data.
If enacted, however, the framework could mark a major shift in Kenya’s financial industry—from institutions controlling isolated pools of customer information toward a system where customers can authorise secure data flows between providers.
For Kenya’s banks and fintechs, the coming debate will centre on how to unlock that innovation without compromising the trust and privacy on which digital finance depends.
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