A Payment Service Provider (PSP) licence in Kenya is issued by the Central Bank of Kenya (CBK) under the National Payment System Act 2011 and NPS Regulations 2014.
It is mandatory for any company offering electronic payment processing, mobile money services, digital wallets, or merchant acquiring services to Kenyan users, including foreign companies serving Kenyan residents remotely.
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- Issued by: Central Bank of Kenya (CBK) under the NPS Act 2011
- Categories: Electronic Retail PSP, Designated Payment Instrument Issuer, E-Money Issuer, Small E-Money Issuer
- First step: BRS company registration in Kenya, required before any CBK application
Why Kenya’s PSP Framework Is Different From Nigeria’s
Kenya’s CBK licensing framework is structured differently from the CBN’s approach. Where Nigeria uses broad categories (PSSP, PTSP, MMO), the CBK uses a tiered system based on transaction type and volume. The key distinction most fintechs miss: the CBK does not recognise licences from other jurisdictions.
If you are already licensed in Nigeria, Ghana, or South Africa, that licence does not transfer. You need a separate Kenyan entity and a separate CBK application. Companies that discover this mid-expansion lose significant time. Read how Raenest avoided this mistake when entering Kenya.
The 4 CBK PSP Licence Categories
1. Electronic Retail PSP
For companies processing retail payments and e-commerce transactions. Core capital: KSh 5 million.
2. Small E-Money Issuer
For limited digital wallet services. Transaction limit: KSh 10,000 per transaction. Core capital: KSh 1 million.
3. E-Money Issuer
For companies issuing e-money and operating digital wallets at scale. Core capital: KSh 20 million.
4. Designated Payment Instrument Issuer
For companies issuing payment cards and instruments. Core capital: KSh 50 million.
The CBK Name Approval Process — Start Here
Kenya’s PSP licensing process begins with a step that Nigeria’s does not: CBK name approval before BRS company registration. You must first submit three proposed names in order of preference to the CBK for approval. Only after the CBK approves the name can you proceed to reserve it with the Business Registration Service and complete incorporation.
Attempting to register a company name with BRS first, without CBK name approval, means restarting the process. Norebase manages this sequencing correctly from day one. See our guide to company registration in Kenya for the full BRS process.
Step-by-Step Process to Acquire Your License
- CBK name approval — Submit three proposed names to the CBK for approval before any company registration.
- BRS company registration — Register your Kenyan entity once the CBK has approved the name. Norebase handles this in 3 to 5 business days.
- Preliminary meeting with CBK — Initiate contact with the CBK National Payments System Department at
nps@centralbank.go.keand attend a preliminary meeting to confirm licensing requirements for your specific business model. - Identify correct licence category — The CBK advises on the applicable category based on your services, transaction volumes, and business model.
- Prepare application documents — A comprehensive business plan, AML/KYC policy, IT security framework, board and management CVs, fit and proper declarations, capital evidence, and Service Level Agreements with all partnering institutions.
- Submit Form 1 with sworn affidavit and application fee — Non-refundable KSh 5,000 filing fee.
- CBK review — The CBK may request additional information. Upon satisfaction, the CBK issues a Letter of Intent requesting the KSh 100,000 authorisation fee.
- Authorization Certificate issued — Within 7 days of payment of the authorisation fee.
Foreign Companies — Additional Requirements
The CBK mandates that all regulated entities maintain a registered office in Kenya and appoint a local compliance officer or agent resident in Kenya. Non-resident fintechs serving Kenyan customers must secure CBK licensing regardless of physical presence.
Norebase provides registered address services in Kenya as part of every licensing engagement, and can advise on the local compliance officer requirement.
Frequently Asked Questions
What is a PSP licence in Kenya?
A PSP licence is an authorisation issued by the Central Bank of Kenya under the National Payment System Act 2011 that permits a company to provide electronic payment services in Kenya. It is mandatory for any company processing payments, issuing e-money, or providing digital wallet services to Kenyan users.
Does my Nigerian PSP licence work in Kenya?
No. The CBK does not recognise licences issued by other central banks. A company licensed by the CBN in Nigeria must apply separately for a CBK licence in Kenya. The two applications are entirely independent. Norebase manages multi-country licensing as a coordinated programme.
How long does CBK PSP licensing take?
The full process typically takes 4 to 9 months. Preparation and name approval takes 4 to 8 weeks. CBK review and authorisation adds 3 to 6 months depending on the licence category and application completeness.
Can a foreign company get a PSP licence in Kenya?
Yes, but you must first incorporate a Kenyan company with the BRS and obtain CBK name approval. The CBK issues licences to Kenyan legal entities only. You must also appoint a local Kenya-resident compliance officer or agent.
Do I need BRS company registration before applying to CBK?
Yes and no — you need CBK name approval before BRS registration, and BRS registration before submitting the full CBK application. The correct sequence is: CBK name approval first, then BRS incorporation, then CBK application. Norebase manages this sequence correctly.
What happens if I operate as a fintech in Kenya without a CBK licence?
Operating as an unlicensed PSP in Kenya is illegal under the National Payment System Act 2011. Consequences include significant fines, forced shutdown of operations, and personal liability for directors. The CBK has increased enforcement activity significantly since 2023.
Get yourPSP licence in Kenya. Norebase manages name approval, BRS incorporation, and the full CBK application. Book a call today.