Kenya’s financial and capital markets regulatory framework continues to evolve through proposed legislation, court decisions, regulatory reviews and public-private partnership developments. This update covers key changes affecting payment systems, non-bank credit providers, arbitration, cross-border investments, capital markets regulation and public-sector project financing.
Payment Systems and Financial Regulation
New Payment Rules Could Open Kenya’s Financial Data Economy
The National Treasury and Central Bank of Kenya have published the draft National Payment System Bill, 2026, proposing to replace the 2011 framework. A key change is the introduction of open finance, allowing customers to authorise providers to share financial data and creating new categories for payment initiation and account information services. E-money issuers would also be required to safeguard customer funds in protected trust accounts. Existing providers would have one year to comply after enactment. Fintechs, banks and payment providers should review the proposals ahead of the 9 October 2026 consultation deadline.
CBK Expands Oversight of Non-Bank Credit Providers
The Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2026 were published on 29 September 2026 as Legal Notice No. 191 of 2026. The Regulations broaden CBK oversight to credit businesses operating digitally or otherwise, including certain asset-finance and buy-now-pay-later models. Providers must comply with licensing and ongoing regulatory requirements, while annual fee non-compliance attracts a KES 1 million penalty. App-based lenders must also allow customers to opt out of marketing after repayment. Non-bank lenders should review their licensing status and compliance frameworks.
Commercial Disputes and Arbitration
Court of Appeal Reinforces Arbitration Rights in Dealer Disputes
On 25 September 2026, the Court of Appeal in Total Kenya PLC v Ngure [2026] KECA 1763 (KLR) confirmed that an agreed arbitration clause can survive termination of a commercial agreement and extend to related employment claims. The Court also held that compliance with contractual notice requirements is a matter for the arbitrator. The decision provides greater certainty for businesses using arbitration in dealer, agency and franchise arrangements. Companies should therefore review dispute-resolution clauses carefully, particularly where commercial relationships may later give rise to employment-related claims.
Public-Private Partnerships and Investment
Dangote Refinery PPP Faces Public Procurement and Value-for-Money Challenge
On 2 October 2026, the Consumers Federation of Kenya petitioned the Public Private Partnerships Petition Committee over the proposed Lamu refinery PPP, seeking information on procurement, approvals, appraisal and due diligence. The petition also questions Kenya’s proposed 10% stake, reportedly valued at approximately USD 500 million, alongside potential offtake, market-protection and electricity commitments. The challenge highlights the scrutiny that large projects involving public equity and potential government liabilities can attract. Project sponsors and investors should expect increased focus on transparency, approvals, value for money and contingent public-sector obligations.
Read Our BITK Blogs
Key Legal and Regulatory Developments in Kenya: September 2026
Kenya Regulatory Updates 2026: Key Policy and Investment Developments
Capital Markets and Cross-Border Investment
CMA Review Highlights Regulatory Hurdles for Cross-Border Investment Products
The Capital Markets Authority is reviewing a proposed structure that would allow Kenyan investors to participate in the Dangote Petroleum share offering through the Nairobi Securities Exchange, potentially from KES 490. The proposed global depositary receipt structure remains subject to CMA and NSE approval. The development highlights an important consideration for foreign issuers: approval in an overseas market does not automatically permit securities to be marketed to Kenyan investors. Foreign issuers and intermediaries seeking Kenyan investors should therefore factor CMA approval and local disclosure requirements into transaction planning.
CMA Invites Proposals to Modernise Capital Markets Rules
On 3 October 2025, the Capital Markets Authority invited stakeholders and the public to submit proposals for amendments to the Capital Markets Act and supporting Regulations. The review seeks to address emerging market developments, regulatory gaps, investor protection and the effectiveness of market supervision. The consultation forms part of CMA’s periodic review of Kenya’s capital markets framework and is being undertaken in line with the Capital Markets Act, the Statutory Instruments Act and constitutional public participation requirements. Submissions are due by 7 November 2025.
