ADVOKS GLOBAL · KENYA
Kenyan legislation
The Central Bank of Kenya (Foreign Exchange Business) Regulations, 2007
Edition: 2022-12-31 · In force
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1. Citation
These Rules may be cited as the Central Bank of Kenya (Foreign Exchange Business) Regulations.2. Application for licence
(1)An application for the grant or renewal of a licence to transact foreign exchange business shall be in Form CBK/FXD/1 in the Schedule and shall be accompanied by the prescribed fee.(2)An applicant for a foreign exchange bureau licence shall in addition to other licensing requirements pay a non-refundable application fee of ten thousand shillings.(3)The application fee prescribed in paragrapgh (1) shall be payable only once by each applicant.(4)The Bank may require the applicant to supply such additional information in support of the application as it may consider necessary.(5)A licence under this Regulation shall be in Form CBK/FXD/2 in the Schedule and shall be valid for a period of one year from the date of issue.3. Minimum core capital
(1)A company applying for a foreign exchange bureau licence shall not be issued with a licence unless it has a minimum core capital of thirty thousand United States Dollars or its equivalent in Kenya Shillings.(2)The minimum core capital prescribed under paragrapgh (1) shall be maintained from the date of commencement of operations and at all times during the course of any business operations of a licensed foreign exchange bureau.4. Grant of licence
(1)Within six months of receipt of an application, and subject to fulfillment of any other licensing criteria, the Central Bank of Kenya shall grant a foreign exchange licence to an applicant upon—(a)payment by the applicant of a licence fee of sixty-five thousand shillings or such other amount as may be determined by the Central Bank of Kenya from time to time; and(b)remittance by the applicant of a non-interest bearing deposit of thirty thousand United States Dollars to a Central Bank of Kenya Dollar Account to be advised.(2)The annual licence fee referred to in subregulation (1) shall be payable on or before the 31st December of the calendar year preceding the validity of the licence.(3)Every foreign exchange bureau licensed prior to the commencement of these Regulations and which paid a non-interest bearing deposit of five thousand United States Dollars shall be required to increase the deposit paid to ten thousand United States Dollars within one year of the commencement of these Regulations.5. Permission for certain enterprises
(1)Any person who—(a)is licensed under the Tourism Act (Cap. 381) to carry on any registered tourist enterprise; or(b)owns or operates a duty free shop; or(c)by the nature of his business, requires to transact regularly in foreign currency,may, pursuant to the provisions of section 33A(3) of the Act on application, be permitted to receive foreign currency which shall be deposited with an authorised bank or sold to an authorised dealer.(2)An application under subregulation (1) shall be in Form CBK/FXD/3 in the Schedule.(3)The Bank may require the applicant to supply such additional information in support of the application as it may consider necessary.(4)The Bank’s permission under this Regulation shall be in CBK/FXD/4 in the Schedule.6. Suspension or revocation of licence
(1)A foreign exchange bureau shall—(a)submit, not later than three months after the end of its financial year, to the Central Bank of Kenya, its annual audited accounts and a copy of the auditor’s report in the prescribed form;(b)furnish, at such time and manner as the Central Bank of Kenya may direct and require, any information in an accurate and complete manner to discharge its functions under the Act; and(c)comply with such guidelines as may be issued by Central Bank of Kenya through circulars.(2)The Central Bank may suspend or revoke the licence of a foreign exchange bureau which contravenes subregulation (1).7. Payment of fees
(1)Any fees prescribed under these Regulations shall be payable to the Central Bank of Kenya.(2)Any fees paid to the Bank under these Regulations shall be non-refundable.8. Revocation of L.N. 23/1996
The Central Bank of Kenya (Foreign Exchange Business) Regulations, 1996 (L.N. 23/1996) are revoked.