New Law to Force All Shops to Accept Cash – Or Face Ksh100K Fines!

A new law is coming that could change how you pay for things in Kenya. If it passes, all business owners must accept cash for goods and services, or face a big fine of Ksh100,000. 

This new law is being pushed by Members of Parliament. They say it’s unfair that some shops refuse to take cash. Some people only have cash and get turned away. That could soon change. 

The proposal comes from the Finance and Planning Committee in the National Assembly. They’ve approved the Central Bank of Kenya (Amendment) Bill, 2025. 

This bill wants to change the Central Bank Act. Its goal is to protect the use of cash. Even though many people use M-Pesa or cards, the MPs say cash should always be accepted. 

The bill says that any business selling goods or services in person must accept cash. This rule will apply for payments up to Ksh100,000. 

Also, the bill says no business should charge extra to customers who pay in cash. Some businesses charge more for cash payments, but this law would stop that. 

Suba South MP Caroli Omondi is the person behind the bill. He met with the committee that reviewed it. The committee liked the idea and said it should move forward. 

They’ve now asked the National Assembly Speaker to publish the bill. Once that’s done, it will be debated in Parliament. 

Benjamin Langat, the committee’s Vice Chairperson, said it’s wrong to refuse cash. He said cash is still the country’s legal tender, and all businesses must respect that. 

Langat explained that customers should be free to pay in cash, by card, or by M-Pesa. People should not be forced to use only digital methods. 

Another MP, Peter Kaluma from Homa Bay Town, said that refusing cash hurts people with disabilities and those without access to mobile money. 

Kaluma said, “If our currency is legal, why should someone refuse to accept it?” He said it’s time for businesses to respect everyone. 

To enforce the law, the committee proposed a fine. Any business that refuses to accept cash could pay up to Ksh100,000 as punishment. 

However, not all businesses will be treated the same. MPs say there should be a few exceptions. 

For example, shops in unsafe or high-risk areas may be allowed to avoid cash for security reasons. 

Also, government offices like Huduma Centres should stay cashless. The goal is to reduce corruption, which can happen more easily with cash. 

But the MPs said if someone has a real reason why they cannot use digital payment at a government office, then they should be allowed to pay in cash. 

Large payments over Ksh500,000 will also remain digital. This is to improve safety and make it easier to trace money and prevent money laundering. 

This proposed law comes at a time when Kenya is moving fast toward digital finance. But MPs say people should not be left behind. 

Many Kenyans, especially in rural areas, still rely on cash. If cash is not accepted, these people face problems in buying goods and services. 

By passing this law, MPs hope to make sure every Kenyan, no matter their payment method, is treated fairly. 

If passed, this law will affect supermarkets, petrol stations, restaurants, barbershops, and even street vendors. 

The MPs say this is about fairness, freedom, and access. They believe every Kenyan should choose how they want to pay, without fear of rejection or extra charges. 

Now, all eyes are on Parliament to see if this bill becomes law. If it does, Kenya will be one of the first African countries to legally protect the right to use cash.