The Central Bank of Kenya (CBK) has made public plans to strengthen its power over the country’s electronic retail payments.
According to the bank, who issued an 18 October deadline for interested parties to submit comments, the proposed rules will improve the safety and efficiency of Kenya’s payment system.
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The suggested regulation will affect all retail transactions which occur through an electronic payment system, including mobile payments.
Among the proposals is a requirement for all retail payment service providers not already licensed by CBK to secure the bank’s authorisation before initiating operations.
To apply, candidates must have a minimal core capital of KES5m ($60,000) and KES20m ($235,000) for electronic retail transfers and e-money issuers, respectively.
The proposal reads: "Any substantial change or enhancement in the electronic retail payment service which an electronic retail payment service provider intends to introduce shall be subject to the approval of the bank and the electronic retail payment service provider shall notify the Bank in writing 30 days prior to the proposed implementation of the change or enhancement".
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By GlobalDataTo qualify as a ‘substantial change or enhancement’, a move must either widen the scope or alter the nature of the related electronic retail payment service.
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