Intro:
Parliament has thrown its weight behind a new proposal that would see businesses penalized for refusing to accept cash payments. In a clear message that “cash is still king,” MPs say the move is meant to protect consumers and ensure financial inclusivity in a rapidly digitizing economy.
Highlights:
- MPs support law to punish businesses that reject cash payments.
- The bill reinforces cash as legal tender amid growing digital payment trends.
- Offenders could face fines or closure of business permits.
- Law aims to protect consumers without access to mobile money or bank cards.
- Debate reflects tension between tech adoption and economic inclusion.
Main Story:
Despite the digital payment boom, Members of Parliament are making it clear that hard cash still matters. Legislators have endorsed a proposal to criminalize the act of rejecting cash as a form of payment, signaling concern over rising cases of cash refusal — especially in urban businesses.
The proposed legislation will compel all licensed businesses to accept cash as a legitimate form of payment. Those who refuse may face penalties, including hefty fines or possible suspension of their trading licenses. The law seeks to reinforce the legal standing of physical currency under the Central Bank of Kenya Act.
Lawmakers argue that millions of Kenyans especially in rural areas and the informal sector still rely heavily on cash. Rejecting it effectively locks out a large population from essential goods and services, especially the elderly, unbanked, and low-income earners.
While mobile money and card payments have grown, particularly in major towns, MPs warn that the digital shift shouldn’t lead to discrimination against those who prefer or depend on physical cash. Businesses, they say, must serve all customers — not just those with digital wallets.
The endorsement has sparked mixed reactions. Some consumers applauded the move, saying they’ve been embarrassed or inconvenienced by cash-only rejections. Others in the business community argue that digital systems reduce risks and improve efficiency. Still, lawmakers insist that technology must serve people, not exclude them.
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As Kenya embraces fintech, one thing is clear the shilling in your pocket is still legal tender, and Parliament wants to keep it that way.
