The Kenyan Cabinet has granted approval for a proposed law that aims to increase the reporting threshold for large cash transactions by banks to Sh2.12 million ($15,000).
This decision is seen as a significant victory for cash-intensive businesses that have long advocated for a higher limit.
Currently, under the United Nations Security Council’s Anti-Money Laundering and Combating Financing of Terrorism Frameworks and the Financial Action Task Force (FATF) guidelines, banks are required to report transactions over $10,000 (Sh1.41 million) to the Financial Reporting Centre (FRC).
If passed by Parliament, the new legislation will empower the FRC to request the revocation of a reporting institution’s license under specific circumstances.
The move is expected to ease transaction processes for businesses and boost cash flow in the economy, although concerns remain about the potential for increased illicit financial activities.
In addition to this development, the Cabinet also approved various other measures, including the introduction of bridging courses to enhance access to quality university education, a tree planting program in learning institutions, and the acquisition of the defunct Kenya Petroleum Refineries Limited by the Kenya Pipeline Company.