Kenya’s Treasury and central bank proposed a new National Payment System Bill introducing open-finance and interoperability requirements. The draft would let customers authorise licensed third parties to access payment-account data held by banks and payment providers. It would also give the Central Bank of Kenya powers to require secure data-sharing mechanisms. Public consultation remains open until 9 October.
The bill would repeal the existing National Payment System Act and replace it with a broader framework for competition, innovation, inclusion, consumer protection and financial stability. Business Daily reported that enacted requirements would apply to banks, mobile-money networks, digital wallets and payment-system operators. Parliament has not approved the proposal.
OPEN FINANCE AND INTEROPERABILITY
Providers would have to operate systems capable of securely sharing customer data for open-finance purposes, subject to customer consent. The central bank would issue later regulations determining what information may be accessed, on what terms and at what cost.
The draft would also require payment providers and system operators to use interoperable systems. The central bank would have powers to require payment providers to enter into interoperability arrangements with other operators.
SAFEGUARDS AND TRANSITION
Business Daily reported that electronic-money and digital-wallet providers would have to keep customer funds in trust accounts at licensed banks. Trust balances could not fall below amounts owed to customers, while administrative penalties could reach KSh20 million.
If Parliament passes the bill, existing providers would have one year from commencement to comply. The consultation closes on 9 October; the bill would then need parliamentary approval, and detailed data-access rules would depend on subsequent central-bank regulations.