A new bill approved by Parliament’s Finance and Planning Committee could soon require all businesses in Kenya to accept cash payments, backed by penalties for non-compliance.
The Central Bank of Kenya (Amendment) Bill, 2025, aims to reinforce the role of physical cash as a legal and accepted form of payment. If passed, it would make it illegal for businesses to reject cash for in-person transactions of up to Ksh100,000.
The proposal further bars businesses from charging customers extra for choosing to pay in cash. MPs say the move is intended to protect consumers’ rights and promote fairness across all payment methods, digital or otherwise.
“The bill mandates that businesses selling goods and services in person must accept cash payments for transactions up to Ksh100,000. Additionally, it prohibits businesses from charging higher prices to customers who choose to pay with cash, thereby promoting fairness in payment options,” the proposal reads.
Suba South MP Caroli Omondi, the bill’s sponsor, presented the proposal to the committee, which has since asked the National Assembly Speaker to approve it for publishing and debate.
Committee Vice Chairperson Benjamin Langat supported the bill, saying no business should turn away legal tender.
“If our currency is the legal tender, then why should someone refuse to take it?” asked Homa Bay Town MP Peter Kaluma, who added that even persons with disabilities were being disadvantaged by a cashless-only trend.
The committee has also recommended a Ksh100,000 fine for any business that refuses to accept cash within the specified limits.
However, not all businesses will be affected equally. Lawmakers propose exemptions for businesses in high-risk areas where handling cash may pose security concerns. Likewise, government offices such as Huduma Centres may remain cashless, unless a citizen has a valid reason to request a cash-based transaction.
For transparency and security, large payments exceeding Ksh500,000 will continue to be processed through non-cash platforms.
If enacted, this bill would be a major shift in Kenya’s increasingly digital payment landscape, reinforcing that cash remains king, at least for now.
