How Much Does a PSP Licence Cost in Kenya?

What Does a PSP Licence Actually Cost?

Getting a PSP licence in Kenya is a significant investment. The total cost depends on several factors: the licence category you need, the complexity of your technology platform, and whether you handle the application yourself or work with advisory support.

Rather than throwing numbers at you that may not apply to your situation, here is a structured breakdown of what drives the cost — so you can understand where your money goes and make informed decisions.

Minimum Capital Requirements by Category

The Central Bank of Kenya requires every PSP licensee to maintain minimum paid-up capital. This capital must be held in a Kenyan bank account at all times and cannot be used for operations.

PSP Category	Minimum Capital	What It Covers
Payment Gateway Provider	KES 5 million	Online payment acceptance for merchants
Payment Technology Service Provider	KES 5 million	POS systems, payment SDKs, switch operators
Payment Service Provider	KES 20 million	Fund transfers, wallets, mobile money
Money Transfer Service	KES 20 million	Domestic and cross-border remittance
Issuer of Payment Instruments	KES 20 million	Prepaid cards, stored value, e-wallets
Multiple Categories	Highest + 50%	Combined services under one licence

CBK Application Fees and Charges

CBK charges several standard fees as part of the application process. These are published by CBK and are the same for all applicants regardless of size or nationality.

• Application processing fee: A non-refundable fee paid at submission
• Licence issuance fee: Paid upon approval before the licence is issued
• Annual licence renewal fee: Paid annually to maintain the licence

For the exact current fee amounts, contact our team — CBK fees are updated periodically and we maintain current figures.

Other Costs You Need to Budget For

Beyond the CBK fees and minimum capital, there are several other cost categories that most applicants underestimate:

• Technology platform development: Building or acquiring a payment platform that meets CBK security standards. This is typically the largest cost component and varies significantly based on your requirements
• Documentation preparation: Business plan, compliance policies, risk management framework, AML/CFT policy, data protection policy, and consumer protection framework. Professional preparation ensures regulator-ready quality
• Security audits: Penetration testing and security assessment by a CBK-approved firm. Required annually
• Legal and advisory fees: Company incorporation, licence application advisory, ongoing compliance support
• Company setup: Incorporation, governance structuring, director fit-and-proper preparation

What Is the Total Investment?

The total investment for a PSP licence in Kenya varies significantly based on your licence category and technology complexity. A Payment Gateway Provider with a simple platform will require a substantially lower investment than a full Payment Service Provider building custom mobile money infrastructure.

For a detailed, tailored cost breakdown specific to your business model and licence category, contact our advisory team. We provide transparent cost assessments with no obligation.

Lower-Cost Alternatives to Consider

If the full PSP licence investment is beyond your current capacity, consider these alternatives:

• Sponsor Licence Model: Operate under an existing PSP's licence. No capital requirement on your side. Launch in 4-8 weeks
• Payment Gateway Partnership: Partner with an established gateway as a reseller. Minimal setup. Launch in 2-4 weeks
• PTSP Licence: Only KES 5 million capital required. Focus on technology provision without handling funds

Application Timeline

Stage	Timeline
Pre-application engagement with CBK	2-4 weeks
Company incorporation & setup	2-3 weeks
Technology platform development	8-16 weeks
Documentation preparation	4-6 weeks
CBK review & technical evaluation	12-20 weeks
Licence issuance	2-4 weeks
Total	6-12 months

Frequently Asked Questions

How much does a PSP licence cost in Kenya?

The total investment varies significantly based on licence category and technology needs. A Payment Gateway Provider requires KES 5 million minimum capital, while a full Payment Service Provider requires KES 20 million. Additional costs include technology development, documentation, security audits, and CBK fees. Contact us for a tailored assessment.

What is the minimum capital for a PSP licence in Kenya?

CBK requires KES 5 million minimum capital for Payment Gateway Providers and Payment Technology Service Providers, and KES 20 million for Payment Service Providers, Money Transfer Services, and Issuers of Payment Instruments.

Are there any hidden costs in the PSP licence process?

The most commonly underestimated costs are technology platform development, security audit requirements, and the time value of capital that must be locked in a bank account for the duration of the application. Proper planning with experienced advisors helps avoid surprises.

Can I get a PSP licence with less capital?

Not for a full PSP licence — CBK minimum capital is non-negotiable. However, a PTSP licence only requires KES 5 million capital. Alternatively, sponsor licence models and gateway partnerships require no capital on your side.

Is the PSP licence fee refundable if my application is rejected?

The CBK application fee is non-refundable. This is why thorough preparation is critical — most rejections are avoidable with proper documentation and compliance frameworks.