Kenya Considers Mandating Cash Acceptance for Transactions Under $775

In a move that could reshape Kenya’s digital economy, a new bill proposes requiring businesses to accept cash for transactions below Ksh100,000 (approximately $775). The Central Bank of Kenya (Amendment) Bill, 2025, introduced by Suba South MP Caroli Omondi, aims to ensure that cash remains a viable payment option for everyday purchases.

The bill responds to concerns that the rapid shift towards cashless payments may marginalize segments of the population, particularly the elderly and those without access to digital payment platforms. Omondi emphasized that many Kenyans still rely on cash and that denying them the ability to use it could be discriminatory.

If enacted, the law would make it illegal for businesses operating in physical locations to refuse cash payments under the specified threshold. Violations could result in fines up to $775 and potential civil liabilities.

This proposal comes as Kenya is experiencing significant growth in digital payments, with projections estimating the value to reach $14.5 billion by 2028. The government’s push for digitalization includes initiatives like the e-Citizen platform, which handles various state services and payments.

However, the bill highlights the need for a balanced approach that accommodates both digital innovation and the realities of those still dependent on cash. Omondi cited a July 2024 IT outage in the United States that disrupted electronic payments, underscoring the importance of maintaining cash as a backup payment method.

The bill is currently under parliamentary committee review and will undergo public consultations before further debate.