A Foreign Exchange Bureau (Forex Bureau) is an institution licensed by the Central Bank of Kenya (CBK) to buy and sell foreign currency in spot transactions. Forex bureaux are regulated under the CBK Act and the Forex Bureau Guidelines, 2011, and serve as a key retail channel for foreign exchange in Kenya.
Fees and Charges
| Fee Item | Amount (KES) |
|---|---|
| Application fee (new licence) | 20,000 (non-refundable) |
| Application fee (additional outlet) | 10,000 (non-refundable) |
| Annual licence fee (per bureau) | 20,000 |
All fees are payable by banker’s cheque to the Central Bank of Kenya. The annual licence fee of KES 20,000 per bureau was doubled from KES 10,000 following CBK regulatory reforms that also raised capital requirements.
Minimum Capital Requirements
| Requirement | Amount |
|---|---|
| Minimum core capital per bureau | KES 5,000,000 (equivalent to approximately USD 50,000–60,000) |
| Minimum operating balance (foreign currency) | USD 4,000 equivalent (approximately KES 520,000+) |
Key Application Requirements
| Requirement | Details |
|---|---|
| Company registration | Must be incorporated as a private limited company |
| CBK name approval | Name must include “Forex Bureau”, “Foreign Exchange Bureau”, or “Bureau de Change” |
| Feasibility study | 3-year financial projections; organisational structure; physical location |
| Memorandum and Articles of Association | Certified copy required |
| Fit and proper forms | All proposed directors and senior officers |
| Minimum core capital evidence | Audited or externally confirmed |
| Physical premises | Must be an appropriate, dedicated operating location |
A forex bureau may not conduct any banking business and is strictly limited to spot foreign exchange transactions. All transactions must be recorded and reported to the CBK. Daily transaction reports, monthly financial reports, and annual audited accounts are mandatory reporting requirements.
Regulated by the Central Bank of Kenya (CBK) under the Central Bank of Kenya Act and the Forex Bureau Guidelines, 2011.