By Opeoluwa Okudero 
Kenya’s increasingly digital economy may face a new check, as lawmakers propose a bill to ban cashless-only transactions for purchases under Ksh 100,000 ($775). The Central Bank of Kenya, CBK (Amendment) Bill, 2025, seeks to make it illegal for physical businesses to reject cash for lower-value transactions.
If passed, the law would be a major regulatory shift in a country that has been championed as a mobile money pioneer, largely due to the widespread adoption of M-PESA and the push for government services on platforms like e-Citizen.
Digital Growth vs Financial Inclusion
The proposed legislation comes at a time when Kenya is doubling down on digital public infrastructure, including digitized payments for state services like birth registrations, passport applications, and even park fees. Ironically, most of these government payments fall well under the $20 threshold.
> “A majority of Kenyans still rely on cash transactions, while some older people do not know how to use mobile money services, making it discriminatory to deny them access to services or goods,” said Omondi.
Critics argue that the universal adoption of cashless payments may inadvertently marginalize millions of Kenyans—particularly the elderly, low-income, and rural populations—who lack access to smartphones, internet, or digital literacy.
The bill also raises concerns about systemic risk in an over-digitized payment ecosystem. Omondi cited the July 2024 IT crash in the United States as a cautionary tale. During the outage, digital transactions came to a halt, exposing the vulnerabilities of a cashless-only economy.
> “Suddenly and without warning, the exchange of goods and services stopped with the IT outage. Buyers were unable to effect cashless payments. Everyone was in need of immediate cash,” Omondi warned.
Business Impact and Legal Penalties
The bill would force businesses—many of which have embraced digital payments for efficiency, traceability, and theft reduction—to adapt their processes to accommodate cash again. If the law is passed, businesses refusing to accept cash under the specified threshold could face fines of up to $775, and civil liability if sued by affected customers.
The Central Bank of Kenya (CBK) has not commented on the proposal. However, it has been a key proponent of market-led digital payments adoption, often highlighting the benefits of reducing cash circulation to enhance transparency and curb illicit transactions.
Kenya’s digital payments market is projected to hit $14.5 billion by 2028, according to Statista, underscoring the rapid uptake of electronic transactions.
Still, this bill could spark a broader policy debate: How do you drive digital innovation without leaving the vulnerable behind?
Next Steps
The bill is currently in its early stages and will undergo parliamentary committee review and public consultation before a formal debate in Parliament.
Susan Olalere
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