ADVOKS GLOBAL · KENYA
National Payment System Act
6. Designation of payment instrument
Edition: 2025-11-04 · In force
6. Designation of payment instrument
(1)The Central Bank may, by notice in the Gazette, designate a payment instrument for purposes of this Act, if the Bank is of the opinion that—(a)the payment instrument is of widespread use as a means of making payment and may affect the payment systems of Kenya;(b)the designation is necessary to protect the interests of the public; or(c)such designation is in the interest of the integrity of the payment instrument.(2)The notice designating a payment instrument under subsection (1) shall specify—(a)the payment instrument that is the subject of the designation;(b)the issuer of the payment instrument that is the subject of the designation; and(c)any terms and conditions to which the designation may be subject.(3)Where a payment instrument has been gazetted for designation, pursuant to subsection (1) and (2), the issuer of that payment instrument shall comply with such requirements as the Central Bank may specify.(4)The Central Bank shall give a written notice of designation of a payment instrument to the issuer of the payment instrument that has been designated pursuant to section 6(1).(5)The Central Bank may revoke or vary any designation of a payment instrument granted under section 6(1) if, in the opinion of the Central Bank, the issuer of a designated payment instrument has—(a)contravened any of the provisions of this Act or regulations made thereunder;(b)contravened any restriction or condition to which the designation is subject;(c)failed to comply with any regulations, guidelines, circulars, notices or standards issued by the Central Bank under this Act;(d)made a false, incorrect or misleading statement in the documents or information submitted under subsection (3);(e)ceased issuing the payment instrument for a continuous period of six months;(f)goes into liquidation or is wound up or is otherwise dissolved;(g)it is in the public interest to vary or revoke the designation;(h)there exists any other ground which in the opinion of the Central Bank warrants variation or revocation.(6)The Central Bank shall, before making a decision to revoke the designation under subsection (5), offer the issuer of a designated payment instrument a reasonable opportunity to make representations.(7)The revocation of a designation or the variation of conditions to which a designation is subject shall not have retroactive effect.(8)Revocation of designation of a payment instrument or variation of conditions thereof, if any, shall be by notice in the Gazette, and written advice thereof shall be given to the designated payment instrument issuer.(9)Without prejudice to section 32 (1), an issuer of a payment instrument shall, upon written advice from the Central Bank to that effect, and within such period as the Bank may prescribe, apply for the designation of the payment instrument under this Act.(10)A person who, upon receipt of advice by the Central Bank in accordance with subsection (9)—(a)fails or refuses to apply for designation of a payment instrument in accordance with the advice commits an offence and is liable, on conviction, to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding five years, or both; and(b)continues to issue a payment instrument that has not been designated under this Act, commits an offence and is liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding three years, or both.