Millions of Kenyans who keep money in mobile wallets could start receiving a share of the income generated from their funds under a proposal by former Central Bank Governor Patrick Njoroge.
Njoroge wants payment service providers (PSPs) to introduce regular “bonus payouts” for customers, using earnings made from funds held in trust on their behalf. He proposes that the payments be made from surplus income after the trust has covered its operating and other related expenses.
The proposal is contained in his comments on the Draft National Payment System Policy, which seeks to reshape the rules governing Kenya’s payments sector.
At the centre of Njoroge’s proposal is the way mobile money customer funds are currently held and the returns generated from them.
The 2014 National Payment System Regulations require PSPs to place customer funds in a trust and maintain balances that are at least equal to the amount owed to wallet holders.
These funds may be held in licensed commercial banks or invested in government securities.
Under the current arrangement, income generated by the trust is handled according to trust law and in consultation with CBK. The proceeds are donated to a public charitable organisation for public charitable purposes.
Njoroge is proposing a different approach, arguing that the rapid expansion of mobile money has changed the circumstances under which the existing system was established.
He wants the excess income left after the trust meets its costs to be directed, at least in part, to the customers whose money generates the returns.
“Customers would receive part of the return generated by funds that underpin their wallets, rather than the entire surplus being channelled elsewhere,’’ Njoroge says.
The former CBK governor has not proposed a fixed rate for the payments or specified whether they should be made monthly, quarterly or at another interval.
The potential value of such a system, however, is linked to the size of Kenya’s mobile money market.
CBK data for July 2026 showed that the country had 94.35 million registered mobile money accounts and 575,400 active agents.
The volume of transactions was also high, with cash deposited and withdrawn through mobile money agents reaching Sh728.7 billion during the month.
Njoroge’s proposal comes against the backdrop of findings from a 2024 GSMA study that examined mobile money systems in 10 countries — Ghana, Jordan, Kenya, Mexico, Pakistan, Paraguay, Rwanda, Tanzania, Uganda and Zambia.
The study found that trust or float accounts generally earn interest. Kenya and Paraguay were identified as the two markets where regulations specifically bar the distribution of float interest to customers while also providing rules on how the income should be used.
In Kenya, the returns are required to go towards charitable purposes. In Paraguay, the interest is directed towards the administrative costs of managing the trust.
The study also examined countries such as Mexico and Pakistan, where mobile money operators cannot pay interest to customers but where regulations do not set out the same specific use of float income as those in Kenya and Paraguay.
GSMA said allowing customers to benefit from the income could have several advantages, including providing an additional source of passive income, encouraging saving and improving confidence in mobile money services.
At the same time, the research noted that providers could face additional administrative and compliance expenses if the returns were distributed.
It proposed flexible arrangements under which customers could benefit through direct payments, reduced fees or better services.
Njoroge has submitted his views as Treasury and CBK prepare to replace the 2011 National Payment System Act with a wider framework designed to reflect developments in the payments industry.
The proposed policy covers areas including interoperability, instant payments, open finance, cybersecurity, consumer protection and competition.
It proposes the establishment of a national instant payment switch and open API standards, alongside tougher cybersecurity measures and new systems for handling consumer complaints, disputes and liability arising from fraud.
Njoroge is also proposing that customers should not be restricted to their own PSP when accessing mobile money agents.
Under his proposal, users should be able to cash in or cash out through agents regardless of the PSP with which they hold their wallet.
He has further called for clearer rules on responsibility for fraudulent transactions and stronger mechanisms for compensating affected consumers.
His recommendations include requiring customers to give clear and revocable consent before their personal information is shared, as well as putting safeguards in place to prevent discriminatory practices by vertically integrated groups.
He also wants the new system to support secure offline payments that can continue to operate when mobile networks are unavailable.
Njoroge has raised another issue concerning the relationship between the proposed policy and existing national plans.
He has questioned how the new framework will relate to the National Payments Strategy 2022–2025, National Digital Master Plan 2022–2032 and National Financial Inclusion Strategy 2025–2028.
He wants the policy to clearly explain whether it is intended to replace those strategies or build on them.
The proposals are now open to public input as Treasury and CBK move ahead with the proposed changes. The two institutions invited comments on the draft policy and Bill last week, with the deadline for submissions set for October 9, 2026.