Govt Limits Sale Of Dollars In Kenya
The Central Bank of Kenya (CBK) has placed restrictions on the sale of dollars to individuals via money transfer services.
Reuters reported on Thursday that CBK will prohibit money transfer companies from selling $100,000 per day to any individual.
The new guidelines will restrict the firms’ ability to sell amounts exceeding the threshold to commercial institutions only.
CBK stated in a statement that it was compelled to act after it was discovered that remittance companies are participating in wholesale foreign exchange without adhering to the sector’s governing guidelines, standards, and protocols.
CBK has issued licenses to approximately eleven money transfer businesses in Kenya.
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Individuals operating large enterprises will now be required to raise funds through banks instead of money transfer companies, which could have an impact on their operations.
The companies offer remittance services to expatriates who send money back home.
According to CBK data, diaspora remittances rose from Ksh41.7 billion to Ksh48.1 billion in March 2023.
In recent years, remittances have grown more rapidly than in neighboring nations, becoming one of the country’s primary sources of foreign currency.
As Kenya’s diaspora population increases, opportunities in the sector have led to the emergence of money remittance services with operations on multiple continents.
Regulating the sale of the dollar also occurs at a time when the local currency is falling due to rising inflation and manufacturer demand.
The dollar sells for Ksh146.76 per CK indicative rates for September 14atiile.
Govt Limits Sale Of Dollars In Kenya