A new bill before Parliament could soon make it illegal for Kenyan businesses to refuse cash for purchases under Ksh100,000 ($775), in a move aimed at safeguarding financial inclusion amid the country’s rapid digital shift.
The Central Bank of Kenya (Amendment) Bill, 2025, tabled by Suba South MP Caroli Omondi, proposes that all businesses operating from physical premises must accept cash payments for transactions below the stated threshold. If passed, the law would prohibit cashless-only policies, which have become increasingly common across shops, restaurants, and even public transport services.
“This bill is about protecting ordinary Kenyans,” said Omondi. “Many people still rely on cash, and some, especially the elderly, are unfamiliar with mobile money systems. Denying them access to goods and services is discriminatory.”
Under the proposed legislation, any business found violating the law could be fined up to Ksh100,000 ($775). Customers may also seek compensation through civil suits.
The proposal comes at a time when Kenya is embracing a digital-first economy, with mobile money platforms like M-Pesa and card payments dominating daily transactions. The Central Bank of Kenya CBK has actively supported this shift, promoting market-driven digital payment adoption. By 2028, Kenya’s digital payments market is projected to hit $14.5 billion.
However, critics of a cashless-only economy argue that such a model excludes vulnerable populations and increases systemic risks. Omondi cited the July 2024 IT outage in the United States, which brought digital payment systems to a standstill, leaving millions stranded without access to essential goods and services.
“That incident exposed a critical flaw in overdependence on cashless systems,” Omondi warned. “When the digital system failed, everyone suddenly needed physical cash.”
The bill may put Parliament at odds with the government’s own digital agenda. Currently, most state services — including park entry fees, birth and death registrations, and passport applications — are only payable through the e-Citizen platform, often for amounts under $20.
The bill will next undergo committee review and public consultation before returning to the National Assembly for debate.
