Kenya is considering new rules that could change how billions of shillings held behind mobile-money wallets are managed, as the government moves to overhaul the country’s national payments framework.

The proposed National Payment System Bill, 2026, developed by the National Treasury and the Central Bank of Kenya (CBK), would allow funds held in trust on behalf of electronic-money customers to be placed in approved government securities or interest-bearing trust accounts, subject to regulatory requirements.

However, the Bill does not currently provide for customers to automatically receive interest on their M-Pesa or Airtel Money balances.

Instead, it sets out rules designed to ensure that customer funds remain protected and available to meet customer claims.

How the Proposed System Would Work

Under the draft legislation, electronic-money issuers and electronic-wallet providers would be required to hold customer funds in trust accounts.

The balance in those accounts must not fall below the amount owed to customers.

The funds could be held in approved bank or microfinance-bank accounts or invested in government securities.

The proposed Bill also prevents payment service providers from transferring trust funds into their ordinary corporate accounts or using them for normal business operations.

The money would generally be restricted to meeting customer liabilities, repaying customers or other purposes authorised by the CBK.

This means money deposited into a mobile wallet would remain legally distinct from the provider’s own operating funds.

Why the Issue Matters

The debate is significant because of the enormous scale of Kenya’s mobile-money industry.

M-Pesa has become one of the country’s most widely used digital payment platforms, with billions of transactions passing through the system every year.

The size of the mobile-money ecosystem means that even relatively modest returns generated from funds held in trust could represent substantial amounts of money.

However, transaction value should not be confused with the amount of money sitting in customer trust accounts at any particular time. The same funds can move through the system repeatedly as customers send, receive, withdraw and spend money.

The draft Bill therefore focuses on how the underlying customer funds are safeguarded and managed rather than treating total annual transaction value as the amount available for investment.

Patrick Njoroge Proposes Bonuses for Mobile-Money Users

The question of who should benefit from income generated by customer funds has gained additional attention following a proposal by former CBK Governor Patrick Njoroge.

Njoroge has called for mobile-money customers to receive regular bonus payments from income generated by funds held in trust.

His proposal would allow payment service providers to first meet the operating and related costs of the trust, with surplus income potentially being distributed to wallet holders.

Njoroge argues that customers should benefit from returns generated by the funds supporting their mobile wallets.

His proposal does not, however, specify a particular interest rate or payment frequency and is not currently a guaranteed provision of the draft Bill.

What Happens to Trust Income?

The draft Bill contains a specific provision dealing with income generated from trust accounts.

Under Section 40, income from a trust account may, subject to CBK approval, be used for public charitable purposes.

This is an important distinction from Njoroge’s proposal, which calls for surplus income to provide a direct benefit to mobile-money customers.

The debate therefore centres on whether income generated from customer funds should continue to be handled under the existing trust framework or whether some of the surplus should ultimately benefit the customers whose money generates the returns.

The Bill Goes Beyond Mobile Money

The proposed legislation is part of a wider effort to modernise Kenya’s payments ecosystem.

According to the CBK, the new framework is intended to promote innovation, competition, interoperability, financial inclusion, consumer protection and financial stability.

The Bill would replace the existing National Payment System Act and introduce provisions covering areas including open finance, interoperability, payment-system operations, cybersecurity-related risks and consumer protection.

The government is also seeking to strengthen Kenya’s position as a regional digital-payments hub as financial technology continues to reshape how individuals and businesses make payments.

What It Could Mean for Customers

For the millions of Kenyans who rely on mobile wallets, the immediate issue is the continued protection of their balances.

The bigger question is whether customers could eventually benefit financially from income generated while their money is held in trust.

If policymakers adopt a mechanism similar to Njoroge’s proposal, mobile-money users could potentially receive bonuses based on returns generated from safeguarded customer funds.

Such a system would require rules covering issues such as how returns are calculated, how trust-management costs are deducted, who qualifies for payments and how frequently customers receive them.

For now, however, M-Pesa and Airtel Money users should not expect automatic interest payments simply because the proposed Bill allows trust funds to earn income.

The draft legislation is still undergoing public consultation. The CBK and National Treasury have invited stakeholders and members of the public to submit their views before the framework moves to the next stage.

The debate could ultimately reshape one of the most important aspects of Kenya’s mobile-money economy: not just where customer funds are kept, but who benefits from the income those funds generate.

Draft National Payment System Policy and National Payment System Bill, 2026

The National Treasury in collaboration with the Central Bank of Kenya (CBK) has developed the draft National Payment System Policy and National Payment System Bill, 2026. The policy aims to establish a modern, safe, secure, efficient, affordable, accessible and inclusive national payment system that supports seamless interoperability, financial inclusion, innovation, economic growth and Kenya’s integration into regional and global payment systems. The National Payment System Bill, 2026 intends to repeal the National Payment System Act, Cap. 491A. The Bill aims to provide an effective and efficient legal framework that promotes market integrity, encourages innovation and competition, fosters financial inclusion, public confidence and secures financial stability through risk management, consumer and data protection.

Read the Public Notice here…

Read the National Payment System Bill, 2026 here…

Download the Template for receiving comments on the NPS Bill here…

Read the Draft National Payment System Policy here…

Download the Template for receiving comments on the Draft NPS Policy here…

Sources: Central Bank of Kenya / National Treasury of Kenya / Business Daily / The Star / Safaricom / People Daily