Business owners are set to be compelled by law to accept cash as a form of payment for goods and services if a new proposal by Members of Parliament is passed.
The development comes after the National Assembly’s Finance and Planning Committee approved the Central Bank of Kenya (Amendment) Bill, 2025.
This bill aims to change the Central Bank Act so that using cash remains a common and accepted way to pay for goods and services, even when getting government services.
According to the proposal, businesses offering goods or services in person must accept cash payments for amounts up to Ksh100,000.
It also says shops and businesses should not charge extra to customers who pay in cash to make sure all payment options are fair.
“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, who is sponsoring the bill, met with the committee, which supported the idea. They asked the National Assembly Speaker to allow the bill to be officially published so that it can be debated in Parliament.
Committee Vice Chairperson Benjamin Langat, who led the meeting, said it was wrong for businesses to reject cash since it is the only legal tender in the country.
Langat added that all payment options, such as cash, credit card, or M-Pesa, should be available so that no customer is left out.
“We will recommend to the Speaker that the Bill be published with some changes. If our currency is the legal tender, then why should someone refuse to take it? Persons with disabilities are suffering,” Homa Bay Town MP Peter Kaluma added.
The committee also agreed to a Ksh100,000 fine for businesses that refuse to accept cash. The MPs want some exceptions included in the final law. Businesses in unsafe areas may be allowed to avoid using cash due to security concerns.
They also proposed that government offices like Huduma Centres should remain cashless to prevent graft unless someone has a genuine reason they cannot use digital payment.
Large payments of Ksh500,000 and above will also be allowed to remain cashless for safety and transparency.
