NewsMacroKenya Mandates Cyber Cafe Customer Registration, Uber Retires UberX in South Africa, SARB Assumes Direct Control of National Payment System

Kenya Mandates Cyber Cafe Customer Registration, Uber Retires UberX in South Africa, SARB Assumes Direct Control of National Payment System

Author: Techcabal·

Key Takeaways

  • Kenya will require cyber cafe operators to collect customer names, national ID numbers, and session times starting August 14, with records kept for at least three years.
  • Cyber cafes in Kenya face fines of at least KES 500,000 or 0.2% of annual turnover if they fail to comply with the new rules.
  • Uber will discontinue UberX in South Africa on September 1 and replace it with Uber Go, Uber Comfort, Uber Black, and Uber Reserve.
  • BRICS members are discussing linking real-time payment systems and potentially using CBDCs to make cross-border settlement faster and cheaper.
  • The South African Reserve Bank is withdrawing PASA’s role as the main manager of the national payment system and transferring operational responsibilities to PayInc by September 2.
Kenya Mandates Cyber Cafe Customer Registration, Uber Retires UberX in South Africa, SARB Assumes Direct Control of National Payment System

Spotify is requiring AI-generated artists to identify themselves on the streaming platform and will limit how prominently algorithmically created tracks appear in user recommendations, Bloomberg reported on August 11, 2026. The policy places Spotify among a growing set of platforms grappling with how to label and rank AI-generated content without alienating either creators or listeners.

Kenya Requires Cyber Cafes to Collect Customer Data Under New Regulations

Kenya's communications regulator is imposing stringent data-collection requirements on the country's cyber cafes, effectively ending anonymous public internet access.

Starting August 14, the Communications Authority of Kenya (CAK) will require all cyber cafe operators to register every customer and maintain detailed session logs for a minimum of three years. Under the new rules, public internet centres must record each customer's name, national ID number, and exact session times.

Cyber cafes play a significant role in bridging Kenya's digital divide and increasingly serve as digital service hubs. In 2024, the CAK noted that "a very large number of entities" operated as cafes in Kenya, without specifying an exact figure. Business listings on Yellow Pages Kenya show at least 300 such establishments. Kenya ranks among Africa's most expensive mobile data markets, making subsidized internet access through cafes especially important for many citizens.

The Kenyan government had initially proposed in 2024 that cafes install closed-circuit television cameras for supervision and collect customer IDs, but that proposal did not take effect at the time. The regulator has since dropped the more controversial measures, including mandatory CCTV and browsing history tracking. However, operators must still install content filters to block illegal websites and obtain approval before reselling bulk internet bandwidth, per CA licensing requirements.

Non-compliant cafes face fines of at least KES 500,000 ($3,860) or 0.2% of their annual turnover, whichever is higher. The regulations are designed to create an audit trail linking cybercrimes committed on shared computers to individual users.

The new requirements align with Kenya's broader National Cybersecurity Strategy, which shifts the focus from open access to accountable access. Mandatory customer registration at public internet access points has precedent in several jurisdictions, including China and Russia, which have long required real-name registration at internet cafes. The regulatory shift comes at a challenging time for cafe operators, some of whom reported declining revenues to Business Daily as far back as 2020. Many have diversified into printing and government e-services to offset shrinking internet-access revenue, a trend noted by BFA Global.

Uber Retires UberX in South Africa, Replacing It With Segmented Service Tiers

Uber is discontinuing its UberX service in South Africa effective September 1, retiring the ride category that helped establish ride-hailing as a mainstream transport option across the country.

The American ride-hailing company, which entered South Africa in 2013, said it is replacing UberX with Uber Go, Uber Comfort, Uber Black, and Uber Reserve to create a "simpler, more tailored lineup." The restructuring splits the former UberX user base into two segments: budget-conscious riders directed toward Uber Go, and riders willing to pay more for newer vehicles, additional space, or premium service via Comfort and Black tiers.

UberX launched in Johannesburg in 2014 and later expanded to other South African cities. It occupied a middle ground between the premium Uber Black tier — typically featuring Mercedes-Benz and Audi vehicles — and the country's traditional minibus taxi industry. Toyota Corolla and Volkswagen Polo Vivo sedans became closely associated with the UberX experience in South African urban mobility, as News24 reported.

Uber stated that riders found it increasingly difficult to distinguish between standard UberX and other vehicle categories, prompting the company to create clearer distinctions between budget and premium options. The decision comes amid an intensifying price war between Uber and Bolt in South Africa's e-hailing market, where both platforms compete for cost-conscious users while addressing ongoing concerns about driver earnings, service quality, and safety. BusinessTech described the move as the end of an era for Uber in the country.

Bolt has also been expanding its service tiers, reportedly exploring a private chauffeur offering as competition deepens across ride-hailing segments. The unbundling of a single mid-tier product into segmented options mirrors strategies Uber has applied in other emerging markets, where widening income gaps make a one-size-fits-all tier less commercially viable.

BRICS Nations Explore Linking Fast Payment Systems and CBDCs for Cross-Border Settlement

The BRICS bloc is in early discussions about connecting member states' fast payment systems and potentially using central bank digital currencies for cross-border settlement, as Bloomberg reported.

Sanjay Malhotra, governor of the Reserve Bank of India, said BRICS members are exploring ways to link their real-time payment rails and examine whether sovereign CBDCs — blockchain-based digital tokens of local currencies issued by central banks — could facilitate cross-border settlement. The objective is to make international payments faster and less expensive by reducing reliance on the traditional correspondent-banking system.

TechCentral reported that the discussions envision a system analogous to building bridges between domestic payment highways such as South Africa's PayShap, where a payment from Johannesburg to Mumbai or São Paulo could bypass slower correspondent banks.

A significant obstacle is that most countries have not yet launched CBDCs. Many remain in research or pilot phases. Only a handful of nations have gone live with CBDCs, including Nigeria (eNaira), Jamaica (Jam-Dex), and the Bahamas (Sand Dollar). For a BRICS payment network built on centrally issued digital currencies to function, substantially more countries — beginning with the bloc's own members — would need to transition from experimentation to full deployment.

South Africa has already made progress on cross-border payment infrastructure. The South African Reserve Bank (SARB) and BankservAfrica have established a 60-second cross-border settlement corridor connecting South Africa and Zambia, with additional Southern African Development Community (SADC) links under development. SARB Governor Lesetja Kganyago has consistently argued that interoperable national payment systems are more practical than creating a common BRICS currency.

A functioning BRICS payment network could lower transaction costs for African exporters, fintech companies, remittance providers, and businesses trading with India and China. If realized, South Africa's payment infrastructure could become part of a larger settlement network for emerging markets, potentially reducing dependence on dollar-denominated global financial systems.

South African Reserve Bank Takes Direct Control of National Payment System

The SARB is overhauling management of South Africa's national payment system for the first time since 1996, withdrawing recognition of the Payments Association of South Africa (PASA) as the system's primary management body.

BusinessTech reported that the central bank is assuming direct control over regulatory and oversight functions that PASA has handled for nearly three decades. Remaining operational responsibilities, including management of PayShap — South Africa's instant payment platform for real-time bank-to-bank transfers — and real-time clearing, will transfer to a new entity called PayInc by September 2.

PASA previously served as a self-regulatory intermediary, overseeing how banks and payment providers processed transactions including electronic funds transfers (EFTs) and debit orders. The SARB is now consolidating standard-setting and system-wide risk management under its own authority, transitioning from an industry self-regulation model to direct central bank oversight.

According to the SARB's payments and settlement division, card payments, ATM withdrawals, and PayShap transfers will continue without disruption during the transition. The central bank aims to strengthen the national payment system's resilience and better accommodate fintech innovation as digital transaction volumes increase.

The restructuring reflects a global trend in which central banks are taking more direct control over payment infrastructure. Brazil's central bank oversees Pix, its instant payment system launched in 2020 that now processes billions of transactions annually, while the Reserve Bank of India operates the Unified Payments Interface (UPI), which has become the country's dominant digital payment rail. The transition to PayInc represents a significant operational test of the SARB's capacity to manage the payment system's day-to-day functions.

Also in the News

  • Rest of World reported on how one venture capital firm processes hundreds of millions of tokens daily in its search for the next unicorn startup.
  • Nigeria collected $19.9 billion in taxes as digital tax systems expand, according to TechCabal.
  • South Africa is exploring the use of machine learning to screen travelers for fraud at border checkpoints.
  • A Francophone investor's guide to Africa's next growth markets was published in TechCabal's Francophone Weekly.
  • The Creative Economy Accelerator Programme is accepting applications from African startups in music, film and media, design, and creative tech until August 28. Selected startups receive between $20,000 and $50,000 in funding and support.

Written by Emmanuel Nwosu and Zia Yusus. Edited by Emmanuel Nwosu & Ganiu Oloruntade.