The Central Bank of Kenya (CBK) has limited the amount of foreign exchange that Money Remittance Providers (MRPs) can sell to a single customer in a day to $100,000.
This move aims to ensure compliance with guidelines and foster a fair and orderly market.
If a customer requires more than $100,000 in foreign exchange, MRPs are now required to direct these transactions to commercial banks.
According to CBK Banking Circular No.9 of 2023, the regulator stated that it had noted an “increased participation of MRP’s in the wholesale of FX without being required to comply with the various guidelines, standards, and codes of conduct that are in place.”
“Therefore, to increase a fair and orderly market, CBK has restricted selling of foreign exchange by MRP’s to customers to a maximum of USD 100,000 per customer per day.”
“MRP’s will therefore be required to only sell FX in excess of USD 100,000 or its equivalent to commercial banks,” said Gerald Nyaoma, Director, Bank Supervision Department in the circular.
In Kenya, money remittance providers play a pivotal role in facilitating the flow of remittances through formal delivery channels and ensuring fair foreign exchange rates.
Currently, there are 20 operating institutions which have been authorised by the CBK, under Regulations to conduct money remittance business.