A parliamentary committee has endorsed a legislative proposal to compel all business entities to accept cash as a mode of payment for the sale of their goods and services.
The National Assembly committee on Finance and National Planning has recommended the publication of the Central Bank of Kenya (Amendment) Bill, 2025, which seeks to amend the Central Bank Act, Cap 291, to ensure that cash as a form of payment for goods and services remains widely accepted, including when accessing government services.
“The Bill mandates that businesses selling goods and services in person must accept cash payments for transactions up to Sh100,000. Additionally, it prohibits businesses from charging higher prices to customers who choose to pay with cash, thereby promoting fairness in payment options,” reads the proposal.
The committee, in a meeting with the sponsor of the Bill, Suba South MP Caroli Omondi, termed the proposal as progressive and recommended that the speaker should publish it for subsequent introduction for first reading.
The committee Vice Chairperson Benjamin Langat who chaired the session said it is illegal for entities to refuse to take cash as a form of payment, yet it is only coins and notes that are legally accepted as legal tender in the country.
“We will recommend to the speaker for the Bill to be published with amendments,” Mr Langat said.
Mr Langat said business entities should make all forms of payment available so that no one is disenfranchised.
“All payments should be available so that if I want to pay with credit card, cash, or M-Pesa, I can be assisted,” Mr Langat said.
“If our currency is the legal tender, then why should someone refuse to take it? Persons with disability are suffering,” said Homa Bay Town MP Peter Kaluma.
The committee also endorsed the Sh100,000 fine for business entities that will fail to provide cash as a mode of payment.
However, they proposed various amendments they want captured in the final document before it is published. Among the recommendations are exemptions where cash will not be accepted.
The committee noted that business entities operating in areas with insecurity should be exempted from accepting cash as a mode of payment.
In order to reduce corruption and increase efficiency in delivery of government services, the committee also proposed that areas such as Huduma Centres be allowed to continue with the cashless system unless a person has special conditions preventing them from transacting using their phone.
The committee further wants transactions that involve large amounts of money–Sh500, 000 and above– be allowed to go the cashless way.
