The Kenya National Payment System Act, enacted in 2011, is a comprehensive legislation that seeks to establish a robust and efficient national payment system in Kenya. The Act provides a legal framework for the regulation and oversight of payment systems, payment service providers, and the issuance of payment instruments, with the aim of promoting financial stability, consumer protection, and economic development. The primary objectives of the Act are: 1. To establish a regulatory framework for the oversight and supervision of payment systems and payment service providers in Kenya. 2. To facilitate the issuance and operation of efficient and secure payment instruments. 3. To promote the safety, efficiency, and reliability of the national payment system. 4. To protect the rights and interests of consumers and users of payment services. 5. To foster competition and innovation in the provision of payment services. The Act defines key terms such as "payment system," "payment service provider," and "payment instrument," and outlines the roles and responsibilities of various stakeholders, including the Central Bank of Kenya (CBK), the National Payments System Council, and payment service providers. Under the Act, the CBK is designated as the primary regulator and overseer of payment systems and payment service providers in Kenya. The Act empowers the CBK to license and supervise payment service providers, issue regulations and guidelines, and take necessary actions to ensure the safety, efficiency, and reliability of the national payment system. The Act also establishes the National Payments System Council, which advises the CBK on matters related to payment systems and payment service providers. The Council is responsible for formulating policies and strategies to promote the development of an efficient and secure national payment system. Furthermore, the Act addresses consumer protection by requiring payment service providers to disclose information on their services, fees, and charges to customers. It also outlines the rights and obligations of consumers and payment service providers, as well as mechanisms for resolving disputes. The Act introduces provisions for the oversight and regulation of various types of payment instruments, such as electronic money (e-money), mobile money, and other innovative payment solutions. It sets out requirements for the issuance, operation, and management of these payment instruments, ensuring compliance with anti-money laundering and counter-terrorism financing regulations. Overall, the Kenya National Payment System Act 2011 represents a significant step towards establishing a modern, efficient, and secure national payment system in Kenya, promoting financial inclusion, consumer protection, and economic development.