Which Fintech Licence Do I Need in Kenya?

Find Your Licence by Product Type

The most common question we hear from fintech founders is: "I am building [product]. Which licence do I actually need?" Here is the answer, organised by what you are building:

Mobile Money / Digital Wallet

• Licence needed: Payment Service Provider (PSP) from CBK
• Minimum capital: KES 20 million
• Also consider: Issuer of Payment Instruments if offering prepaid cards

Payment Gateway / Online Payments

• Licence needed: Payment Gateway Provider from CBK
• Minimum capital: KES 5 million
• Also consider: PSP licence if you also process transfers

Digital Lending / Buy-Now-Pay-Later

• Licence needed: Digital Credit Provider (DCP) from CBK
• Minimum capital: KES 20 million
• Note: This is mandatory since the Digital Credit Providers Act 2022

Cross-Border Remittance

• Licence needed: Money Transfer Service from CBK
• Minimum capital: KES 20 million
• Also need: AML/CFT compliance with FRC reporting

Sports Betting / Online Gambling

• Licence needed: Sports Betting Licence from GRA
• Minimum capital: KES 50 million
• Also need: Responsible gaming policy, game certifications

Online Casino

• Licence needed: Online Casino Licence from GRA
• Minimum capital: KES 30 million
• Also need: RNG certification, game certifications from approved labs

Crypto Exchange / Virtual Assets

• Licence needed: VASP registration from CMA (through regulatory sandbox)
• Capital: Varies — currently through CMA sandbox programme
• Note: Dedicated VASP regulations are still being developed

POS Systems / Payment Technology

• Licence needed: Payment Technology Service Provider (PTSP) from CBK
• Minimum capital: KES 5 million
• Note: You provide technology but do not hold customer funds

Virtual Accounts / Banking-as-a-Service

• Licence needed: Partnership with licensed bank + PSP licence may be required
• Capital: Depends on whether you also process payments

CBK Licences Explained

The Central Bank of Kenya (CBK) regulates all payment services, digital credit, and money remittance through the National Payment System Act and the Digital Credit Providers Act. If your business involves moving money — payments, transfers, lending, or remittance — you likely need a CBK licence.

CMA Licences Explained

The Capital Markets Authority (CMA) regulates capital markets activities including virtual assets, investment platforms, and securities. If your business involves crypto, tokenised assets, or investment products, you may need CMA registration.

GRA Licences Explained

The Gambling Regulatory Authority (GRA) regulates all gambling activities — sports betting, casino gaming, lotteries, and gaming machines. If your platform involves betting or games of chance, you need a GRA licence.

Do You Need Multiple Licences?

Many fintechs in Kenya require more than one licence. For example:

• A payment app offering lending needs both PSP and DCP licences from CBK
• A gaming platform with in-app purchases needs both GRA and PSP licences
• A crypto exchange offering payments needs CMA and CBK licences

Activities That Do Not Need a Licence

Not every fintech activity requires a regulatory licence:

• Financial education and advisory: Providing information and advice does not require a licence
• Technology provision: Selling payment software or APIs to licensed entities (as a PTSP)
• Business consulting: General fintech strategy and market entry consulting
• Aggregators and comparison sites: Displaying financial products without processing transactions

How to Apply for Your Licence

Once you know which licence you need, the general process is:

1. Incorporate a Kenyan company with appropriate governance structure
2. Prepare comprehensive documentation — business plan, compliance policies, technology specs
3. Deposit minimum capital in a Kenyan bank account
4. Submit application to the relevant regulator (CBK, CMA, or GRA)
5. Undergo review and inspection — this is where thorough preparation pays off
6. Receive your licence with specific operational conditions

Still not sure which licence you need? Book a free consultation and our team will help you identify exactly which licences your business model requires.

Frequently Asked Questions

Which fintech licence do I need in Kenya?

It depends entirely on your business model. Payment services need a CBK PSP licence. Digital lending needs a CBK DCP licence. Sports betting or casino needs a GRA licence. Crypto needs CMA registration. If your product involves multiple activities, you may need multiple licences.

Can I operate a fintech without any licence in Kenya?

Some activities do not require a licence — financial education, technology provision to licensed entities, and business consulting. However, any activity involving payment processing, lending, gambling, or securities requires the appropriate licence. Operating without a required licence is illegal.

Do I need multiple licences for one fintech product?

Yes, if your product spans multiple regulated activities. For example, a payment app offering lending needs both PSP and DCP licences from CBK. A gaming platform with in-app purchases needs both GRA and PSP licences.

What is the easiest fintech licence to get in Kenya?

The Payment Technology Service Provider (PTSP) licence has the lowest capital requirement at KES 5 million and is the fastest to obtain. However, it only covers technology provision — you cannot process payments or hold customer funds.

How do I know if my product needs a CBK, CMA, or GRA licence?

CBK regulates payments, lending, and remittance. CMA regulates capital markets, investments, and virtual assets. GRA regulates gambling and betting. If your product involves moving money, you likely need CBK. If it involves gambling, you need GRA. If it involves crypto or investments, you need CMA.