Kenyan businesses could soon face penalties of up to Ksh100,000 if a proposed law requiring them to accept cash payments is passed by Parliament.
The Central Bank of Kenya (Amendment) Bill, 2025, currently before the National Assembly, seeks to make it mandatory for all businesses operating in physical locations to accept cash for transactions not exceeding Ksh100,000. The Bill also prohibits businesses from charging higher prices to customers who opt to pay in cash, aiming to promote fairness and inclusivity in how goods and services are paid for.
According to the Bill, “Businesses selling goods and services in person must accept cash payments for transactions of up to Sh100,000. Additionally, it prohibits businesses from charging higher prices to customers who choose to pay with cash, thereby promoting fairness in payment options.”
If enacted into law, traders and service providers who fail to comply could be slapped with a fine of up to Ksh100,000. The move targets entities that have shifted to cashless-only payment models or penalize customers who prefer using physical currency—a practice that lawmakers argue discriminates against certain groups, particularly the elderly and residents in low-connectivity regions.
Proponents of the legislation say that while digital and card-based payments offer convenience and efficiency, consumers should still have the freedom to choose how they want to pay.
Omondi’s Bill Seeks to Protect Elderly Kenyans
Suba South MP Caroli Omondi, who sponsored the Bill, said the proposed law intends to shield consumers—especially senior citizens—from being locked out of transactions because they don’t use mobile money platforms.
“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 when paying in cash,” said Omondi.
He added that many Kenyans still lack access to smartphones or reliable internet connections, making digital payment options unrealistic for them. For this segment of the population, cash remains the only viable method of payment.
“By ensuring that businesses cannot refuse cash or impose unfair pricing policies, the Bill seeks to protect consumer rights and eliminate discrimination based on payment methods,” the Bill further states.
Beyond consumer protection, the Bill also aims to bring legal clarity by defining how businesses should handle payment options for in-person transactions. Lawmakers believe these clear guidelines will encourage business owners to comply, while creating a more inclusive marketplace where no customer is turned away based on how they choose to pay.
Exemptions
However, the proposed law also recognizes that some exceptions may be necessary. It includes provisions that allow businesses to decline cash payments under specific circumstances—such as when systems fail or when they lack enough change to complete a cash transaction.
“Subsection 1 on payment of cash shall not apply to a person if the person is unable to accept cash because of a sale system failure that temporarily prevents the processing of cash payments or insufficiency of cash on hand to give as change,” the Bill explains.
This clause is designed to balance consumer rights with the operational realities businesses face, such as technical glitches or liquidity issues. Lawmakers believe this built-in flexibility will help ensure compliance while also maintaining fairness for both customers and traders.
If passed, the Bill could transform how businesses handle in-person payments—reaffirming cash as a protected and accessible option for all.
