An overview of how to become a licenced Payment Services Provider (PSP) in Kenya
Kenya’s FinTech landscape continues to attract both local and international investors seeking to build the next generation of digital financial solutions. A critical step to operating legally and sustainably in this space is obtaining a Payment Services Provider (PSP) License from the Central Bank of Kenya (CBK).
“Every customer transaction is a touch point with a bank or payment services provider....”
- Anonymous
Kenya’s dynamic and innovation-driven economy has positioned it as a hub for mobile money, digital payments, and cross-border financial services. However, with opportunity comes regulatory scrutiny therefore obtaining a PSP license is not just a legal requirement—it’s a credibility enhancer. It signals to banks, partners, and consumers that your FinTech or payments business operates in line with Kenya’s laws under the National Payment System Act, 2011 and related CBK regulations. Without licensing you risk regulatory penalties or shutdowns, you cannot open settlement accounts with Kenyan banks, you may be excluded from key partnerships and integrations. Therefore, for investors, PSP licensing is a strategic entry point into East Africa’s fast-growing digital payments market.
A Payment Services Provider (PSP) license is issued by the Central Bank of Kenya to entities offering one or more of the following services:
- Mobile wallets and payment apps
- Online or e-commerce payment gateways
- Merchant acquiring services
- Cross-border remittances
- Bill payments and bulk disbursements
- Payment infrastructure or aggregation platforms
The CBK categorizes PSPs into various classes; Small Money Remittance Providers, Large PSPs, E-Money Issuers and Payment Gateways & Aggregators, each with different licensing thresholds, requirements, and operational guidelines. Whether you’re a startup preparing for launch or an existing entity scaling into payments, registering a FinTech company in Kenya, planning to handle digital payments or remittances, entering the Kenyan market as a foreign PSP, launching a blockchain-based payment platform early engagement with the licensing process is critical.
Applying for a PSP license in Kenya requires strategic planning, robust documentation, and expert navigation of CBK processes. At EKC Advocates LLP, we assist both local and international clients with: Legal structuring and due diligence; Compliance preparation and documentation; and Regulatory liaison and CBK engagement
📧 Contact us today at eddah@ekcadvocates.com , for further engagement or to schedule a consultation.
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