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regulation of fintech


Hold onto your hats, folks, because the “Fintech Revolution” in Kenya is making waves, and the government is doubling down on regulation to keep the industry in check. But don’t let the thought of regulatory jargon put you to sleep – this is a fast-paced industry with innovative companies shaking up the traditional banking model and making financial services accessible to everyone.

When it comes to Fintech regulation in Kenya, there’s no room for error, and Fintech companies need legal experts to guide them through the regulatory maze. That’s where CR Advocates LLP comes in – a top law firm in Kenya specializing in financial services and regulatory compliance. The Firm offers strategic advice to Fintech companies looking to expand their operations in Kenya and beyond. The firm’s deep understanding of the financial services sector in Kenya and the East African region allows it to provide valuable insights and guidance to its clients.

CR Advocates LLP has helped numerous Fintech companies obtain licenses and comply with regulatory requirements. The firm works closely with industry regulators such as the CBK, CMA, CAK, and NPSD to ensure its clients operate within a regulated framework and avoid any legal or reputational risks. The firm’s expertise extends beyond regulatory compliance, and it also advises Fintech companies on data protection, intellectual property, contracts, and other legal matters. CR Advocates LLP understands that data is the lifeblood of Fintech companies and has a dedicated team of data protection experts to help clients comply with the Data Protection Act (2019) and other relevant regulations.

At the forefront of Fintech regulation is the Central Bank of Kenya (CBK), which is responsible for overseeing financial institutions and ensuring that Fintech companies operate within a regulated framework. All Fintech companies in Kenya are required to obtain a license from the CBK to operate, ensuring that only reputable and credible companies are allowed to operate.

But the CBK isn’t the only regulatory body keeping Fintech companies in check. The Capital Markets Authority (CMA) oversees the capital markets and regulates Fintech companies offering investment products or services. The CMA ensures compliance with securities laws and protects investors, particularly for peer-to-peer lending platforms that have gained popularity in Kenya.

Meanwhile, the Communications Authority of Kenya (CAK) is responsible for regulating mobile network operators offering mobile money services. Mobile money is a prevalent form of financial service in Kenya, and the CAK ensures the security, reliability, and accessibility of mobile money services to all Kenyans.

And let’s not forget about the National Payment Systems Department (NPSD), which regulates payment systems to ensure they are safe, efficient, and transparent. E-commerce platforms rely on payment systems to facilitate transactions, making NPSD’s role crucial for Fintech companies offering payment services.

The Kenyan government has also established a regulatory sandbox, allowing Fintech companies to test their products and services in a controlled environment before going to market. The sandbox is overseen by the CBK and provides a platform for Fintech companies to collaborate with regulators to develop innovative solutions that meet regulatory requirements.

The Financial Services Act (2019) is another crucial component of Fintech regulation in Kenya. The act promotes innovation and competition in the financial services sector while safeguarding consumer interests through the licensing and regulation of Fintech companies by the CBK.

Data is the new oil, and Fintech companies in Kenya know it better than anyone. With consumers’ sensitive personal and financial information at their fingertips, Fintech companies have a duty to protect their data from cybercriminals and nefarious actors. Fortunately, the Kenyan government is ahead of the curve with the Data Protection Act (2019), ensuring that Fintech companies handle data with the care and responsibility it deserves.

The Data Protection Act (2019) establishes clear guidelines on the collection, processing, and storage of personal data by Fintech companies, putting consumers’ privacy and security first. It also establishes the Office of the Data Protection Commissioner to oversee data protection in Kenya, ensuring Fintech companies comply with the law and hold them accountable for any breaches. Failure to comply with data protection laws could result in hefty fines, legal action, and most importantly, the loss of consumer trust.

Fintech companies wanting to set up operations, and those operating in Kenya need legal experts to navigate the complex regulatory landscape and ensure compliance with legislation. CR Advocates LLP is a top law firm in Kenya specializing in financial services and regulatory compliance, providing legal and strategic advice to Fintech companies looking to make a difference in Kenya’s financial services sector. The Firm’s diligence in helping Fintech companies will provide an opportunity for Fintech to focus on innovation and delivering cutting-edge financial services while complying with regulatory requirements and keeping consumers’ data safe and secure.


The registration requirements for Fintech companies in Kenya may vary depending on the type of Fintech Company, but generally, the following are the requirements:

  • Incorporation of the company: The Fintech company must be incorporated as a limited company under the Companies Act, 2015. The process involves reserving a company name, preparing and submitting the Memorandum and Articles of Association, and paying the requisite fees to the Registrar of Companies.
  • Obtain a Tax Identification Number (TIN): The Fintech company must obtain a TIN from the Kenya Revenue Authority (KRA). This involves registering for tax purposes and obtaining a PIN certificate.
  • Obtain necessary licenses and permits: Depending on the type of Fintech company, the following licenses, and permits may be required:
  1. Central Bank of Kenya License: If the Fintech company provides banking services or electronic payment services, it must obtain a license from the Central Bank of Kenya (CBK). This requires the submission of an application, business plan, and other supporting documents.
  2. Capital Markets Authority License: If the Fintech company provides investment-related services such as online trading, it must obtain a license from the Capital Markets Authority (CMA). This requires the submission of an application, business plan, and other supporting documents.
  3. Communications Authority of Kenya License: If the Fintech company provides mobile money services, it must obtain a license from the Communications Authority of Kenya (CAK). This requires the submission of an application, business plan, and other supporting documents.
  4. Data Protection License: Fintech companies that process personal data must obtain a license from the Data Protection Commissioner. This requires the submission of an application, data protection policy, and other supporting documents.
  • Open a bank account: The Fintech company must open a bank account with a local bank in Kenya. This account will be used to transact business, receive payments, and pay taxes.
  • Register with the Financial Reporting Centre: Fintech companies must register with the Financial Reporting Centre (FRC) as a reporting entity for purposes of anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.
  • Comply with other regulatory requirements: Fintech companies must comply with other regulatory requirements such as the Companies Act, the Banking Act, the Electronic Transactions Act, and other relevant laws and regulations.

Fintech companies in Kenya must comply with the above mentioned regulatory requirements to operate legally. The specific requirements will depend on the nature of the business and the services provided. It is advisable to reach out to CR Advocates LLP to ensure compliance with all applicable regulations.

CR Advocates LLP has been at the heart of the registration of multiple Fintech companies and startups in Kenya due to the improved ease of doing business in Kenya as compared to other places in Africa. The dedicated team of Advocates and consultants across the value chain enables a seamless registration process for any multinational company seeking to set up a shop in Kenya and the East African region.

So, what does this mean for the future of Fintech in Kenya?

Fintech in Kenya has been booming in recent years, and the future looks brighter than ever. With a supportive government and a favorable business environment, the stage is set for Fintech startups to revolutionize the financial industry in Kenya and beyond.

One area where Fintech is likely to continue to make waves is in mobile payments. Mobile money services, like the wildly successful M-Pesa, have already transformed the way Kenyans transfer money, pay bills, and access financial services. There is still plenty of room for growth and innovation in this space, as mobile penetration continues to increase and new technologies emerge.

In addition, the development of new Fintech solutions in areas such as digital lending, insurance, and investment is expected to accelerate. With Kenya’s vibrant startup scene and a growing pool of tech-savvy consumers, the potential for disruption and growth is enormous.

Of course, there are challenges that Fintech companies will need to navigate. Regulatory barriers, cybersecurity risks, and competition from established financial institutions are just a few of the hurdles that must be overcome. But with collaboration between industry players, regulators, and other stakeholders, these challenges can be addressed and overcome.


As Fintech continues to evolve and expand, CR Advocates LLP is well-positioned to help Fintech start-ups and other companies in Kenya stay ahead of the curve. Whether it’s assisting with the development of new Fintech solutions or helping companies comply with regulatory requirements, CR Advocates LLP is committed to providing top-notch legal services that help companies achieve their goals. In summary, the future of Fintech in Kenya is bright, and with the right legal support from CR Advocates LLP, Fintech start-ups can confidently navigate the legal and regulatory landscape and grow their businesses in this promising sector.

The future of Fintech in Kenya is exciting and promising. With continued innovation, investment, and collaboration, Fintech has the potential to transform the financial industry and improve access to financial services for millions of Kenyans.


The information provided in this article is intended for general legal advice and does not constitute legal advice for any specific transaction or case. Since each transaction presents a unique legal context, it is advisable to retain a legal adviser for specific transactions.

To contact CR Advocates LLP, send us an email at or call +254 100979081 or Book a strategy call HERE or direct message us HERE on WhatsApp at your convenience. Our legal team will be happy to help you.

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