Kuwait’s Ministry of Commerce and Industry has capped cash transactions at KD 10 for certain businesses, effective from June 4, 2026, under Ministerial Decision No. 32 of 2026 issued by Minister Osama Boodai. The rule mandates electronic or bank transfers for higher amounts in sectors such as healthcare, salons, sports clubs and pest control to increase transparency and promote digital payments, the ministry said in a statement.
The ministry’s decision applies to health institutes, salons for men, women and children, sports clubs, pest and rodent control services, and businesses involved in the import, export and storage of public health pesticides. Article One of the decision prohibits cash transactions valued at over KD 10 when signing contracts, selling commodities or offering services. All such payments must instead use banking channels or electronic payment systems approved by the Central Bank of Kuwait in line with its regulations. Affected companies will be required to adjust their procedures to meet the new standard.
Penalties for violations include fines, closure of the establishment and referral to authorities in accordance with Decree Law No. 10 of 1979, according to the ministry. The decision nullifies any prior conflicting regulations to establish uniform requirements. This structure draws on existing commercial laws to support consistent application across the listed sectors.
The Ministry of Commerce and Industry said in its statement, “The move aims to strengthen oversight of financial transactions, promote the use of electronic payments, and curb irregular practices across targeted sectors.” The measure was published on April 16, 2026, with the June enforcement date allowing time for businesses to prepare. It reflects the ministry’s focus on sectors that typically handle frequent customer payments.
Digital payments currently represent approximately 59 percent of consumer transactions in Kuwait, according to banking industry figures. A US Department of Commerce guide reported that online digital payments have grown nine times faster than point-of-sale transactions over the past five years. The Central Bank of Kuwait has reinforced this shift with campaigns to improve financial literacy and security.
The Middle East digital payment market is expected to expand from USD 17.5 billion in 2025 to USD 50 billion by 2031 at a compound annual growth rate of 10.9 percent, a 6Wresearch assessment found. Kuwait’s information and communication technology market was valued at $20.4 billion in 2025 and is projected to reach $32.18 billion within five years, the US Department of Commerce guide indicated. These figures highlight the supporting environment for the ministry’s initiative to widen electronic transaction use.
