Banks in Kenya are physically transporting large amounts of cash across borders, with the United Kingdom, South Sudan, and the Democratic Republic of Congo (DRC) emerging as top destinations.
The 2025 Survey on the Cross-Border Movement of Cash survey by the Central Bank of Kenya (CBK) has revealed that 15 out of 38 commercial banks, representing 39.4% of all licensed banks in Kenya, reported that they move physical cash internationally.
Further, the report detailed that the main method used is air transportation through air cash couriers to deliver the money safely to designated recipients in foreign countries.
“The majority of the respondents, 59 percent, transport physical cash across borders through air cash couriers.”
“The banks mainly transport the physical cash to South Sudan, Democratic Republic of Congo (DRC), Tanzania, United States of America (USA), Germany, Switzerland, and the United Kingdom (UK),” the report read in part.
Also Read: CBK Publishes List of Banks with Lowest and Highest Loan Rates
Reasons Why Banks in Kenya are Flying Cash Out
The survey explained that the main reasons for banks to transport physical cash across borders are repatriation of foreign currency and promoting operational efficiency by meeting the liquidity needs of foreign subsidiaries.
The report outlines two primary reasons why Kenyan banks are sending money out of the country. First is the repatriation of foreign currency, a process where banks return excess or surplus foreign currency held locally to international financial centers.
This helps align liquidity levels with operational needs and global transactions.
Second, there is the need to meet the liquidity demands of foreign subsidiaries. Many Kenyan banks operate in regional markets and often need to supply cash to their branches or affiliated institutions in neighboring countries to support daily operations and customer transactions.
“This pattern reveals a strong financial relationship between Kenya and Western economies, particularly the UK, which collectively (including the USA, Germany, and Switzerland) account for over three-quarters of all outflows,” explained the report.
At the same time, Kenyan banks also send cash to the United States, Germany, Switzerland.
Also Read: 39 Kenyan Banks Launch New Crackdown on Loan Defaulters
Where is the money Coming From?
The main source of cash transported across borders is customer deposits across branches.
However, other times they are sourced from group subsidiaries, currency exchange agencies, and central banks of other countries.
Moreover, recipients of the physical cash include a variety of institutions, and financial services companies that specialize in cross-border payments and foreign exchange lead the list.
Other recipients include foreign subsidiaries, correspondent banks, and specific bank customers who require large cash transfers for legitimate business or operational purposes.
To ensure that these movements comply with financial regulations, banks are required to follow strict due diligence processes, including identifying cash couriers, completing cash declaration forms, and monitoring for suspicious activities.
Also, the survey noted that most banks have policies in place governing the handling of cross-border cash, and collaborate closely with regulators such as the Financial Reporting Centre (FRC), the Kenya Revenue Authority (KRA), and the CBK itself.
Follow our WhatsApp Channel and X Account for real-time news updates.
