Kenyans warned by CBK against unapproved payment companies that move money

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On Monday, the Central Bank of Kenya (CBK) issued a warning to people and businesses using unlicensed money transfer services.

According to a statement from CBK, there is an increasing number of instances of organizations providing money remittance and payment services without authorization.

Kenyans who engage in such transactions run the danger of losing their money, the regulator has cautioned.

Additionally, CBK declared that anyone caught transferring money illegally will face legal action.

In an effort to assist in eliminating the illicit enterprises functioning in Kenya, the general public was urged to report any individual or entity providing money transfer services without the required paperwork.

The regulator specifically advised Kenyans not to use unregistered providers for money or value transfer services, also known as “Hawala.”

Hawala is an unofficial way to transfer money outside of commercial banks and other official financial organizations without any actual money changing.

Promissory notes are not used in Kenyan broker-to-broker transactions because the system primarily depends on mutual confidence.

Hawala is frequently linked to money laundering since it offers transaction anonymity, making it impossible to determine the money’s origins.

The list of businesses authorized to provide payment and money remittance services may be found at www.centralbank.go.ke.

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