CBK Forex Bureau Licensing in Kenya: Requirements and Compliance

Foreign exchange bureaus in Kenya are licensed and supervised by the Central Bank of Kenya (CBK) under Part VIA of the Central Bank of Kenya Act (Cap. 491). No person may transact foreign exchange business in Kenya without a valid licence issued by CBK. This article sets out the licensing framework, capital requirements, operating conditions, and compliance obligations that apply to forex bureaus, and flags a live discrepancy in the primary legal sources that anyone advising in this space should be aware of.

Legal Framework

Forex bureau licensing sits under three overlapping instruments:

The Central Bank of Kenya Act (Cap. 491), Part VIA, which establishes the general licensing power and the concept of an “authorised bureau.”
The Central Bank of Kenya (Foreign Exchange Business) Regulations, 2007 (Legal Notice 62 of 2007), gazetted subsidiary legislation that revoked and replaced the 1996 Regulations.
The Forex Bureau Guidelines, 2011, issued by CBK under section 33K of the Act, effective 1 April 2011, superseding the 2007 guidelines.

A fourth layer, the Proceeds of Crime and Anti-Money Laundering Act, 2009, imposes AML/CFT obligations directly on bureaus as reporting institutions. Our overview of AML compliance and the Financial Reporting Centre covers the reporting institution framework in more detail.

A Note on Conflicting Capital and Fee Figures

Before setting out the requirements, it is worth being transparent about a discrepancy between the gazetted Regulations and CBK’s current administrative practice, because it affects what an applicant should actually budget for.

LN 62/2007, as currently published by Kenya Law and unamended since 2007, sets a minimum core capital of US$30,000 and an application fee of Kshs 10,000.

Contemporaneous reporting from 2011 confirms that CBK raised these figures as part of a package of anti-money-laundering reforms: core capital to US$60,000, application fee to Kshs 20,000, and the minimum operating balance to US$4,000. CBK’s own current licensing procedure materials reflect the higher figures, and these are the numbers CBK enforces today.

What has not been located, despite searching, is a numbered Legal Notice formally amending LN 62/2007 to reflect the increase. The gazetted Regulations still state US$30,000 on their face. This means the higher, currently enforced figures rest on the 2011 Guidelines and CBK circulars rather than on an amendment to the binding Regulations. For any applicant, the practical answer is to budget for the higher figures, since that is what CBK will require. For anyone relying on the point in a dispute with CBK, the gap is worth raising with counsel rather than assuming it has been resolved.

Licensing Requirements

To obtain a forex bureau licence, an applicant must:

Obtain CBK’s consent to use “Forex Bureau,” “Foreign Exchange Bureau,” or “Bureau De Change” in its company name.
Incorporate a limited liability company with foreign exchange transactions as its main object.
Hold minimum core capital of US$60,000 or its Kenya Shilling equivalent (see discrepancy note above), maintained at all times.
Have sufficient funds to meet the non-interest bearing deposit of US$30,000 payable to CBK.
Maintain a fixed, identifiable, publicly accessible place of business meeting CBK’s premises standards.
Ensure no shareholder or officer holds an interest in more than one licensed forex bureau.

Application Process

An application is submitted to the Director, Bank Supervision Department, on Form CBK/FXD/1, accompanied by the non-refundable application fee, a certified statement of affairs, memorandum and articles of association, certificate of incorporation, a feasibility study, six months of bank statements for shareholders and directors, fit and proper forms and credit reference bureau reports for shareholders, directors and principal officers, and declarations regarding bankruptcy, prior involvement in collapsed institutions, and criminal convictions involving dishonesty.

CBK has up to 90 days from lodging to request further information, issue a letter of intent (valid six months), or decline the application with a right of appeal within 30 days. On satisfying the letter of intent conditions, the applicant pays the licence fee of Kshs 65,000, remits the US$30,000 deposit, and CBK inspects the premises before the licence issues. Licences run on a calendar year and are not transferable, assignable, or prorated.

Fit and Proper Requirements

Directors, principal officers, assistant principal officers, and shareholders must be vetted and approved by CBK before assuming their roles. Minimum standards include at least ordinary-level education, no convictions for dishonesty-related offences, no history of managing a collapsed licensed institution, and no non-performing credit facilities. A bureau must appoint at least two directors, a principal officer and alternate, and an assistant principal officer per outlet, all as full-time employees.

Permitted and Prohibited Activities

Bureaus are confined to spot transactions. They may buy and sell foreign currency cash and travellers cheques, sell foreign currency drafts, and act as agents for mobile money or international money transfer operators subject to CBK’s prior written approval.

They may not deal in gold, lend money, maintain customer current accounts, issue letters of credit, transact in the forward market, act as custodians or payment/collection agents for customers, use third parties for safekeeping of funds, or conduct business over the internet. Telegraphic transfers through a bank are capped at US$100,000 per customer per day, and any apparent structuring of transactions to stay under reporting thresholds is prohibited.

AML/CFT Obligations

Bureaus are reporting institutions under the Proceeds of Crime and Anti-Money Laundering Act 2009 (POCAMLA). Obligations include customer due diligence before any transaction, verified identification, record retention, staff training on money laundering red flags, and filing Suspicious Transaction Reports on Form CBK/FXD/5. “Tipping off” a customer after filing a report is a criminal offence under the Act.

Note on reporting thresholds: POCAMLA was substantially amended by the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023 (in force 15 September 2023), and further amended in 2025. Contemporaneous commentary indicates a reporting threshold moved from US$10,000 to US$15,000, though it is not yet settled whether this applies to the general POCAMLA transaction threshold or the separate cross-border currency conveyance threshold. CBK’s own forex bureau-specific daily return threshold is a third, distinct figure set under the CBK Guidelines. This article does not state a specific dollar threshold until these are individually confirmed against current primary sources.

Ongoing Reporting to CBK

Daily indicative exchange rates before 9.30 a.m.
Daily returns for transactions above the threshold prescribed by CBK for single foreign currency receipts and outflows.
Weekly transaction returns by 3.00 p.m. the first working day of the following week.
Quarterly balance sheet and profit and loss account within 30 days of quarter end.
Audited annual accounts within three months of financial year end (calendar year).

Penalties, Suspension, and Revocation

CBK may suspend a licence for non-compliance with the Act or licence conditions, and may revoke it where a bureau fails to commence business within six months of licensing, ceases operations, becomes insolvent, fails to pay fees or penalties, supplies false information, or becomes undercapitalised. CBK must give 14 days’ written notice before suspending or revoking a licence and must consider any written representations made within that period. Fees already paid are non-refundable in the event of revocation or voluntary winding up, though the non-interest bearing deposit, net of penalties owed, is refundable within 30 days.

This article is for general information and does not constitute legal advice. Forex bureau applicants should confirm current capital and fee requirements directly with the Central Bank of Kenya before budgeting for licensing, given the discrepancy between the gazetted Regulations and CBK’s current administrative practice noted above. Reporting thresholds under POCAMLA have also changed by amendment since the underlying CBK Guidelines were issued and should be independently verified.