Kenya’s digital momentum is facing a regulatory curveball.

A new bill before Parliament could make it illegal for businesses operating in physical locations to reject cash for transactions under Ksh100,000 (~$775). Tabled by Suba South MP Caroli Omondi, the Central Bank of Kenya (Amendment) Bill, 2025 is being positioned as a safeguard for financially excluded groups—particularly the elderly and underserved rural populations.

But for businesses—especially those in coworking, retail, tech, hospitality, and other consumer-facing industries—the implications are more than cultural. They’re operational, infrastructural, and financial.

Why This Matters to Modern Businesses

At OfficePhase, we’ve seen firsthand how digital payments enhance business efficiency—reducing the need for physical cash handling, tightening internal controls, and enabling better data analytics for growth decisions. This bill, if passed, may compel businesses to reintegrate cash-handling systems that many had phased out.

From reception desks in coworking spaces to automated point-of-sale systems in coffee shops and retail counters, physical cash introduces new needs: security measures, accounting reconciliation, training, and even insurance considerations.

While the motivation behind the bill—financial inclusivity—is legitimate, we believe it requires a nuanced, tech-forward dialogue. The question isn’t “cash or digital?” but rather, how do we make digital inclusion more equitable?

Potential Effects on the Business Landscape

If enacted, here’s how the bill may affect operations:

• Increased Operational Overheads: Businesses will need to invest in secure cash storage, reconciliation protocols, and staff training—reversing cost savings achieved via digital systems.

• Customer Experience Disruption: The streamlined experience of quick tap-to-pay or mobile money could be diluted. Staff may need to juggle between cash and digital queues, causing delays and errors.

• Data Gaps for Business Intelligence: Cash transactions don’t offer the same level of actionable insights as digital payments—making it harder for businesses to forecast, segment, or personalize services.

• Security and Theft Risks: The return of physical currency increases the potential for internal fraud and external theft—an issue many startups and small businesses are not structurally prepared for.

• Barrier to Scaling: Startups and micro-businesses that were born digital-first may now need to invest in retrofitting cash systems—slowing their scaling efforts.

What Businesses Can Do

At OfficePhase, we encourage businesses to:

1. Stay Compliant, But Innovate: If the bill passes, be ready to integrate hybrid payment models while leveraging tools that digitize cash handling (e.g., automated tills, digital cash tracking apps).

2. Advocate Responsibly: Join business networks and policy discussions to voice the operational realities of enforcing such a bill. Policy shouldn’t penalize innovation but guide it inclusively.

3. Educate Your Market: Use the opportunity to introduce customers—especially cash users—to your digital platforms through assisted onboarding, promotions, or dual-payment incentives.

4. Audit Your Security: If you’re reintroducing cash, tighten your physical and financial security protocols immediately.

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Final Thoughts

Kenya’s fintech ecosystem has been a continental leader, but this proposed rollback on digital-only transactions is a reminder that inclusive innovation must walk hand-in-hand with policy evolution. Businesses will need to navigate this shift with empathy, adaptability, and foresight.

At OfficePhase, we continue to empower startups and modern businesses with resources, shared infrastructure, and insights that drive operational clarity in a fast-changing regulatory environment.

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