Kenswitch launches a domestic card scheme in Kenya

The Hidden Scale of Kenya’s Card Economy

For more than twenty years, financial inclusion discussions in Kenya have focused primarily on M-Pesa. By July 2026, the country recorded 94.35 million registered mobile-money accounts supported by 575,400 agents, handling KES 728.7 billion ($5.6 billion) in a single month. This heavy reliance on mobile wallets created a payments ecosystem where commercial banks, fintechs, and merchant quick response codes predominantly route back to mobile-money rails, leaving the underlying infrastructure of the card economy largely dependent on international networks like Visa and Mastercard.

Global Precedents for Domestic Payment Sovereignty

Other major economies have pursued domestic payment schemes to reduce friction and build resilience in retail commerce. India launched its RuPay domestic card network in 2012 before introducing the Unified Payments Interface, which expanded transaction volumes from 5.39 billion in the 2018–19 financial year to 131.13 billion in 2023–24. Similarly, Saudi Arabia integrated its domestic card network, Mada, into a broader digitalization strategy that helped drive electronic payments to 85 percent of retail transactions by 2025, according to central bank figures cited by industry analysts.

Strategic Advantages of a Local Card Scheme

Introducing a domestic card network provides Kenyan banks and fintechs with alternative rails for innovation, allowing for localized pricing, virtual cards, tokenization, contactless payments, and direct integration with instant-payment architecture. Routing domestic transactions locally while maintaining international network availability for overseas travel enhances national payment resilience. As digital transactions become critical for daily commerce, operating these underlying rails directly addresses the strategic question of who controls domestic financial infrastructure.

Overcoming Market Adoption Challenges

Building a successful domestic card scheme requires breaking a circular dependency where merchants accept cards because customers carry them, and banks issue them because merchants accept them. Kenswitch faces the challenge of providing reliability, security, and widespread acceptance rather than simply replicating existing plastic cards. Success depends on achieving scale and offering tangible incentives for both consumers and financial institutions.

Frequently Asked Questions

What is Kenswitch launching in Kenya’s payments sector?

Kenswitch is launching a domestic card scheme designed to expand local payment infrastructure beyond mobile money and international card networks.

How large is Kenya’s current card economy?

According to Central Bank of Kenya figures, the country had 13.76 million payment cards and 56,083 point-of-sale terminals, processing over 6.2 million transactions worth KES 27.1 billion ($209 million) in July 2026.

Why do countries build domestic card networks?

Domestic card networks like India’s RuPay and Saudi Arabia’s Mada allow countries to route local transactions independently, reduce reliance on foreign infrastructure, and foster local product innovation.

Does a domestic card scheme replace international networks like Visa and Mastercard?

No. Domestic schemes operate alongside global networks, handling local transactions while international systems remain available for cross-border payments.