Kenya proposes up to $1.93m capital requirement for payment firms
- Kenya proposes new capital requirements for payment companies, raising the entry cost for fintechs.
- The Central Bank of Kenya sets minimum capital thresholds from KES 5 million to KES 250 million.
- Existing payment providers have one year to comply with the new capital rules after the law's enactment.
The proposed capital requirements in Kenya could stifle innovation and competition in the fintech sector, particularly for startups that lack the financial backing of established players. While the regulatory sandbox offers some relief, the overall impact of these stringent requirements may lead to a less dynamic payments market.
