2
The Central Bank of Kenya has launched a regulatory sandbox for embedded finance—allowing non-bank platforms like e-commerce and ride-hailing apps to offer regulated financial services under supervision. Announced in May 2024, the sandbox permits testing of features like buy-now-pay-later (BNPL), insurance at checkout, and savings nudges. Fintechs must partner with licensed banks and cap exposure at Ksh500 million per pilot. The move responds to explosive growth in super-apps like Copia and MarketForce. CBK Governor Kamau Thugge said the goal is to foster innovation while protecting consumers. Ten startups have already applied. Kenya becomes the third African country after Nigeria and South Africa to adopt such a framework.