Wave of approval greets Kuwait’s KD 10 cash cap

08/04/2026

Wave of approval greets Kuwait’s KD 10 cash cap

KUWAIT CITY, April 8: The decision to ban cash transactions exceeding KD 10 in several sectors was widely welcomed in business and economic circles, describing it as a “positive step” toward strengthening administrative and accounting oversight and supporting the state’s efforts to reduce reliance on cash.

Earlier, Minister of Commerce and Industry Osama Boodai had issued Ministerial Decree No. 32/2026, which requires relevant entities to use banking channels and electronic payment methods approved by the Central Bank of Kuwait. In this regard, businessman and economic expert Qais Al-Ghanim highlighted that expanding electronic transactions carries significant administrative, regulatory, and oversight benefits.

He explained that similar measures are implemented in many countries worldwide, particularly in Europe, where individuals rely almost entirely on electronic payment methods, such as bank cards, and cash is rarely used in cafés and everyday transactions. Kuwait’s infrastructure is fully prepared to support the digital transformation of financial transactions.

Payment services such as KNet and bank cards are widely available to citizens and residents without additional fees. The decision would help reduce workplace theft and improve accounting practices within companies by facilitating the tracking of funds and enabling more accurate and transparent financial operations. Al-Ghanim affirmed that the shift to electronic payments also contributes to combating money laundering and strengthens oversight of financial transfers, particularly those conducted internationally.

Meanwhile, economic expert Mohammed Ramadan echoed Qais Al-Ghanim’s assessment of Kuwait’s readiness for electronic banking transactions, emphasizing that the decision carries regulatory, administrative, technical, and security implications. He noted that the decision aligns with the state’s direction to reduce reliance on cash and promote digital payments. Ramadan highlighted the clear direct correlation between expanding the use of electronic banking systems and strengthening oversight of money flows. He explained that the greater the reliance on electronic payments, the easier it becomes to track and control financial transactions.

The decision helps reduce financial manipulation, particularly in activities not directly subject to price controls. Also, promoting electronic transactions serves as an effective tool to combat money laundering and suspicious activities by providing a transparent and verifiable record of financial transactions. Furthermore, Head of the Training Committee at the Kuwait Accountants and Auditors Association, Talal Al- Assad, said the decision represents an important step toward strengthening the principles of governance and transparency in the Kuwaiti market.

It reflects an ongoing trend, as the majority of society in Kuwait has increasingly become accustomed to using digital payment methods over cash. Al-Assad emphasized that the shift to electronic systems directly contributes to regulating financial operations within companies and enhances the efficiency of internal controls. He affirmed that the decision supports the business environment by providing more accurate accounting tools and helping to organize cash flows. Al-Assad highlighted that relying on electronic payments reduces the risks associated with cash transactions, whether from human error or illegal practices.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff