National Payment System Act

Section 1. Short title Section This Act may be cited as the National Payment System Act.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "bank" has the meaning assigned to it in the Banking Act ( Cap. 488 ); “beneficial owner" has the meaning assigned to it under the Companies Act ( Cap. 486 ); "business day" me ans any day, other than a Sunday, a public holiday declared in accordance with the Public Holidays Act ( Cap. 110 ), a day declared to be a bank holiday under the Banking Act ( Cap. 488 ), or a day declared to be a bank holiday under the Microfinance Act ( Cap. 493C ), on which the institutions and the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") are open to the public for carrying on business functions; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance; "Central Bank" means the Central Bank of Kenya established under the Central Bank of Kenya Act ( Cap. 491 ); "Central Bank of Kenya settlement system" means a settlement system ("a system established and operated by the Central Bank for the discharge of payment or settlement obligations, or the discharge of payment and settlement obligations, between system partici...

Section 3. Designation of apayment system Section 3(1)(a) the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") poses systemic risk ("the risk that failure of one or more settlement system participants, for whatever reason, to meet their payment obligations or their settlement obligations may result in any or all of the other settlement system participants being unable to meet their respective payment or settlement obligations") ; Section 3(1)(b) the designation is necessary to protect the interest of the public; or Section 3(1)(c) such designation is in the interest of the integrity of the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") . Section 3(2)(a) the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instr...

Section 4. Amendment to constitution and rules ofdesignated payment system Section No amendment to the constitution of any designated payment system ("a payment system designated in accordance with;") , or to the rules governing the system, shall have effect until they have been approved by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") .

Section 5. Inspection of constitution and rules ofdesignated payment system Section the offices of the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") ; and

Section 6. Designation ofpayment instrument Section 6(1)(a) the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") is of widespread use as a means of making payment and may affect the payment systems of Kenya; Section 6(1)(b) the designation is necessary to protect the interests of the public; or Section 6(1)(c) such designation is in the interest of the integrity of the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") . Section 6(2)(a) the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") that is the subject of the designation; Section 6(2)(b) the issuer of the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") that is the subject of the designation; and Section 6(2)(c) any terms and conditions to which the designation may be subject. Section 6(3) Where...

Section 7. Recognition of apayment system management body Section 7(1) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") shall, upon designation of a payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") under this Act, automatically recognize the management body of such payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") . Section 7(2) A payment system management body ("a body recognized by the Central Bank in accordance with;") recognized pursuant to the provisions of this section shall be subject to the guidelines that may be issued by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") from time to time. Section 7(3) Where a payment system management body ("a body recognized by the Central Bank in accordance with;") recognised under subsectio...

Section 8. Objects,etc.of recognizedpayment system management body Section 8(1)(a) provide a forum for the consideration of matters of policy and mutual interest concerning its members; Section 8(1)(b) act as a medium for communication by its members with the Government, the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , any financial or other exchange, other public bodies, authorities and officials, the news media, the general public and other private associations and institutions; and Section 8(1)(c) deal with and promote any other matter of interest to its members and foster co-operation among them. Section 8(2)(a) to admit members and to regulate, control and with the approval of the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") terminate membership; Section 8(2)(b) to constitute, establish or dissolve any body, committee or forum consisting of its members and which has an impact on, interacts with, has access to or makes use of any payment, clearing or settlement ("discharge of settlement obligations;") systems or operations; Section 8(2)(c) recommend for approval by the Central...

Section 9. Effectingsettlement Section 9(1) Settlement shall be effected by payment of money or by means of entries passed through the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system ("a system established and operated by the Central Bank for the discharge of payment or settlement obligations, or the discharge of payment and settlement obligations, between system participants in that system;") or a designated payment system ("a payment system designated in accordance with;") . Section 9(2) A settlement ("discharge of settlement obligations;") that has been effected by payment of money or by means of an entry to the credit of the account maintained by a settlement system participant in the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system ("a system established and operated by the Central Bank for the discharge of payment or settlement obligations, or the discharge of payment and settlement obligations, between system participants in that system;") or a designated payment system ("a payment system designated in accordance with;") shall be final and irrevoca...

Section 10. Clearing provisions Section 10(1)(a) a Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system participant ; or Section 10(1)(b) a bank , an institution ("a bank, mortgage finance company or a financial institution as defined in the Banking Act () or a microfinance bank business as defined in the Microfinance Act () or any other body which the Cabinet Secretary may, in consultation with the Central Bank, declare, by notice in the, to be an institution for the purposes of this Act;") or a branch of a foreign institution ("a bank, mortgage finance company or a financial institution as defined in the Banking Act () or a microfinance bank business as defined in the Microfinance Act () or any other body which the Cabinet Secretary may, in consultation with the Central Bank, declare, by notice in the, to be an institution for the purposes of this Act;") that is allowed to clear ("the exchange of payment instructions, and "clearing" shall be construed accordingly;") in terms of section 8 (2)(d)(i). Section 10(2) A person ("any legal entity including a trust;") who contravenes the provisions of subsection (1) commits an o...

Section 11. Payments to third parties Section the first-mentioned person ("any legal entity including a trust;") is the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , a bank , an institution ("a bank, mortgage finance company or a financial institution as defined in the Banking Act () or a microfinance bank business as defined in the Microfinance Act () or any other body which the Cabinet Secretary may, in consultation with the Central Bank, declare, by notice in the, to be an institution for the purposes of this Act;") or a branch of a foreign institution ("a bank, mortgage finance company or a financial institution as defined in the Banking Act () or a microfinance bank business as defined in the Microfinance Act () or any other body which the Cabinet Secretary may, in consultation with the Central Bank, declare, by notice in the, to be an institution for the purposes of this Act;") , a payment service provider or a designated payment system operator ("an operator of a designated payment system;") ; or

Section 12. Authorisation of Payment Service Provider Section 12(1) No person ("any legal entity including a trust;") shall, in Kenya conduct the business of a payment service provider except an authorized payment service provider . Section 12(2) A person ("any legal entity including a trust;") who contravenes the provisions of subsection (1) commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both.

Section 13. Application for authorisation Section 13(1) A person ("any legal entity including a trust;") proposing to transact the business of a payment service provider shall, before commencing such business, apply to the Bank for authorization. Section 13(2) An application under this section shall be made in the prescribed form and shall be forwarded to the Bank together with the prescribed fee. Section 13(3) In considering an application for authorization, the Bank may require to be satisfied as to the financial condition and history of the applicant, the character of its management, the adequacy of its capital structure and the convenience and needs of the area to be served and the public interest which will be served by granting of the authorisation. Section 13(4) The Bank may, subject to the payment of the prescribed fee and to such conditions as it may consider necessary, grant authorization to the applicant. Section 13(5) Where authorization has been granted under this section, the Bank may add, vary, or substitute conditions attached thereto. Section 13(6) An authorisation issued under this section shall, unless earlier revoked, be valid for twelve months next following th...

Section 14. Renewal of authorisation Section 14(1) An authorisation made under section 13 may on expiry be renewed for a further period of twelve months: Provided that where an authorised payment service provider fails to commence business in Kenya within six months of the grant of authorisation, the authorized payment service provider shall, if still intending to conduct payment service business in Kenya, apply for authorization as if the first authorisation had never been granted. Section 14(2)(a) be made in the prescribed form and forwarded to the Bank together with the prescribed fee; Section 14(2)(b) be lodged with the Bank at least two months prior to the expiry of the authorisation. Section 14(3) An application for renewal of an authorization shall be considered in accordance with the provisions of section 13 .

Section 15. Revocation of authorisation Section 15(1)(a) ceases to carry on business in Kenya or goes into liquidation or is wound up, or is otherwise dissolved; Section 15(1)(b) fails to comply with the provisions of this Act or any condition attached to an authorisation; or Section 15(1)(c) conducts business in a manner detrimental to the best interests of the public. Section 15(2) Before revoking or suspending an authorization under this section, the Bank shall give an authorized payment service provider , not less than fourteen days notice in writing and shall consider any representations made to it in writing by the authorised payment service provider within that period.

Section 16. Netting agreements and rules Section 16(1) To the extent that a provision of the Insolvency Act ( Cap. 53 ), the Banking Act ( Cap. 488 ) the Building Societies Act ( Cap. 489 ) the Co-operative Societies Act ( Cap. 490 ) or the Microfinance Act ( Cap. 493C ) is inconsistent with this section, this section prevails. Section 16(2)(a) a written netting ("the determination of the net payment obligations between two or more settlement system participants within a payment clearing house or the determination of the net settlement obligations between two or more settlement system participants within a settlement system;") agreement to which the participant is a party; Section 16(2)(b) the settlement system ("a system established and operated by the Central Bank for the discharge of payment or settlement obligations, or the discharge of payment and settlement obligations, between system participants in that system;") rules; Section 16(2)(c) a clearing, netting ("the determination of the net payment obligations between two or more settlement system participants within a payment clearing house or the determination of the net settlement obligations between two or more settlement s...

Section 17. Powers and functions of theCentral Bank Section 17(1) Notwithstanding subsection (2), the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") shall, in the exercise of its role of formulating and implementing such policies as best promote the establishment, regulation and supervision of efficient and effective payment, clearing and settlement ("discharge of settlement obligations;") systems, exercise all the powers and perform all the functions conferred and imposed on it by this Act, the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") of Kenya Act ( Cap. 491 ), and any other law. Section 17(2)(a) delegate to any of its officers the exercise of any of its powers under this Act; or Section 17(2)(b) authorize any such officer to perform any of its functions under this Act. Section 17(3)(a) shall not prevent the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") from exercising that power or performing that function; and Section 17(3)(b) may at any time be withdrawn in writing by the Central Bank ("the Central Bank of Kenya established under...

Section 18. Prohibition of issuance of payment instruments Section 18(1)(a) the issuing or use of the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") is detrimental to the reliable, safe, efficient and smooth operation of a national payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") ; or Section 18(1)(b) the prohibition is in the interest of the public. Section 18(2) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") may, in considering whether to prohibit any person ("any legal entity including a trust;") from issuing or using any payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") under subsection (1), inspect the premises, equipment, machinery, apparatus, books or other documents, or accounts and transactions of the issuer or user of the payment...

Section 19. Participation by theCentral Bank Section 19(1)(a) be a participant and enforce any failure to settle ("the inability of a settlement system participant to meet its settlement obligations in a clearing house;") arrangement; Section 19(1)(b) act as a custodian of a settlement ("discharge of settlement obligations;") participant’s settlement ("discharge of settlement obligations;") assets or act as a settlement ("discharge of settlement obligations;") agent. Section 19(1)(c) regulate and supervise such system(s). Section 19(2) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") may provide any additional services it considers desirable, including facilities for clearing financial effects to designated payment system ("a payment system designated in accordance with;") participants.

Section 20. Provision of information to theCentral Bank Section 20(1) A person ("any legal entity including a trust;") shall, upon being required to do so, provide the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") with such information relating to a payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") or payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") , in such form and at such times as the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") may prescribe. Section 20(2)(a) the volumes and values of payment instructions cleared in the system; Section 20(2)(b) the volumes or values of the participant’s payment obligations and settlement ("discharge of settlement obligations;") obligations; and Section 20(2)(c) any other information regarding the operation of the system as the Central Bank ("the Central Bank of Ken...

Section 21. Settlement of disputes Section 21(1) If any Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system participant considers itself aggrieved by a decision taken by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") under any provision of this Act, the matter shall be deemed to constitute a dispute between that Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system participant and the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , which dispute shall be settled as provided in this section. Section 21(2) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system participant concerned shall, within ninety days after the decision of the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , in writing, furnish the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") with full particulars of the grievance, and thereafter the Cen...

Section 22. Power ofCentral Bankto advise and direct Section 22(1) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") may, from time to time, issue directives to any person ("any legal entity including a trust;") regarding a payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") or a payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") on the application of the provisions of this Act. Section 22(2)(a) that reasonable grounds exist to believe that any person ("any legal entity including a trust;") is engaging in, or is about to engage in, any act, omission or course of conduct, with respect to the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") or payment instrument ("any instrument, whe...

Section 23. Audits and inspection Section 23(1) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") shall, for the purposes of carrying out its functions under this Act, conduct audits and inspections of a designated payment system ("a payment system designated in accordance with;") or of an issuer of a designated payment instrument ("a payment instrument designated in accordance with;") . Section 23(2) Every designated payment system participant or the issuer of a designated payment instrument ("a payment instrument designated in accordance with;") shall, as may be required by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , assist the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") to the extent necessary, to enable the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") carry out an audit or inspection.

Section 24. Reports Section such reports as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for matters relating to finance;") may require; and

Section 17A. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing matters Section 17A(1) Pursuant to section 2A, 36A, 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") shall regulate, supervise and enforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ). Section 17A(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution ("a bank, mortgage finance company or a financial institution as defined in the Banking Act () or a microfinance bank business as defined in the Microfinance Act () or any other body which the Cabinet Secretary may, in consultation with the Central Bank, declare, by notice in the, to...

Section 17B. Penalties for violations relating to money laundering, terrorism financing Section 17B(1) No payment service provider , director, officer, employer, agent or any other person ("any legal entity including a trust;") shall violate or fail to comply with any provision of the Proceeds of Crime and Anti-Money Laundering Act, 2009, or any regulation, guideline, rule, direction or instruction issued under the said Act or under section 17A of this Act. Section 17B(2)(a) in case of a legal person ("any legal entity including a trust;") , to a penalty not exceeding twenty million shillings; Section 17B(2)(b) in the case of a natural person ("any legal entity including a trust;") , to a penalty not exceeding one million shillings; and Section 17B(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.

Section 17C. Rights and fundamental freedoms Section All persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act. [Act No. 10 of 2023 , Sch.]

Section 17D. Limitation of right to privacy Section 17D(1) The right to privacy guaranteed under Article 31 of the Constitution is hereby limited under Article 24 of the Constitution only to the nature and extent contemplated under subsection (2). Section 17D(2)(a) the person ("any legal entity including a trust;") ’s home or property may, with a warrant, be searched; Section 17D(2)(b) the person ("any legal entity including a trust;") ’s possessions may be seized; Section 17D(2)(c) information relating to that person ("any legal entity including a trust;") ’s financial, family or private affairs where required may be revealed to the relevant authorities; or Section 17D(2)(d) the privacy of a person ("any legal entity including a trust;") ’s communications may be investigated or otherwise interfered with. Section 17D(3) A limitation of a right under subsection (1) shall apply only for the purpose of the prevention, detection, investigation and prosecution of proceeds of crime, money laundering and financing of terrorism. [Act No. 10 of 2023 , Sch.]

Section 25. Utilization of assets of adesignated payment system participant Section Despite anything to the contrary in any law relating to insolvency, any asset of a designated payment system participant which was provided prior to the issue of any order for that settlement system participant ’s winding-up by that participant to the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , or the designated payment system operator ("an operator of a designated payment system;") , as security for a loan in respect of its settlement ("discharge of settlement obligations;") obligations, may be utilized by the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") or the designated payment system operator ("an operator of a designated payment system;") , as the case may be, to the extent required for the discharge of the settlement ("discharge of settlement obligations;") obligations of the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the sys...

Section 26. Retention of records Section 26(1) Notwithstanding anything to the contrary in any law relating to the retention of records, the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") , the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") settlement system ("a system established and operated by the Central Bank for the discharge of payment or settlement obligations, or the discharge of payment and settlement obligations, between system participants in that system;") participants, payment clearing house ("an arrangement between two or more Central Bank settlement system participants, excluding a designated payment system operator, governing the clearing of payment instructions between those Central Bank settlement system participants;") system operators and system operators, shall retain all records obtained by them during the course of the operations and administration of a payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to th...

Section 27. Use of confidential information for personal gain Section 27(1)(a) any officer or employee of the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") ; or Section 27(1)(b) any member or employee of a payment system management body ("a body recognized by the Central Bank in accordance with;") , Section 27(2) It shall be a defence to a charge under subsection (1) for the person ("any legal entity including a trust;") charged to show that the information which he used was generally known to members of the public or to a substantial section of the public.

Section 28. Priority of certain instruments on winding up Section 28(1) In this section, "priority payment instruction ("an instruction to a settlement system participant to transfer funds or make a payment;") " means a money order, bank draft or similar payment instruction ("an instruction to a settlement system participant to transfer funds or make a payment;") issued, directly or indirectly, by a participant in a designated payment system ("a payment system designated in accordance with;") , but does not include an instrument issued by one such participant to another for the purpose of effecting a payment between them. Section 28(2)(a) are payable from the participant's assets; and Section 28(2)(b) rank in preference above any other unsecured claim against the assets. Section 28(3) A payment is not payable under subsection (2) in preference to any other claim against assets unless a request for the payment has been made within sixty days after the making of the liquidation order in relation to the participant concerned. Section 28(4) Subsection (2) does not permit a payment instruction ("an instruction to a settlement system participant to transfer funds or make a payment;") to...

Section 29. Misleading advertisements Section 29(1)(a) falsely represents that he is designated to operate the payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") or issue the payment instrument ("any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services, or to otherwise make payment;") under the provisions of this Act; Section 29(1)(b) falsely represents that he is recognised to manage a payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") under the provisions of this Act; or Section 29(1)(c) is issued contrary to the provisions of this Act, Section 29(2) The Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") may at any time direct any person ("any legal entity including a trust;") to withdraw, amend or refrain from issuing any advertisement, brochu...

Section 30. Relief from prosecution Section No action shall lie against the Central Bank ("the Central Bank of Kenya established under the Central Bank of Kenya Act ();") or any of its officers or other persons appointed or authorized to perform any function under this Act, in respect of anything done or omitted to be done by him in good faith in the exercise or performance of any power, authority, or function conferred or imposed on him under this Act.

Section 31. Regulations and guidelines Section 31(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for matters relating to finance;") may make regulations generally for the better carrying into effect the provisions of this Act. Section 31(2)(a) prescribe anything which under this Act may be prescribed; Section 31(2)(b) subject to this Act, issue guidelines in respect of any matter relating to the administration or enforcement of this Act; and Section 31(2)(c) prescribe monetary fines for payment system ("a system or arrangement that enables payments to be effected between a payer and a beneficiary, or facilitates the circulation of money, and includes any instruments and procedures that relate to the system;") operators, issuers of payment instruments or authorized payment service providers, which shall not exceed one million shillings.