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Excise Duty Changes & Over the Counter Cash Transaction Guidelines

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This is to advise all our customers that in line with the 2018 Budget, Excise Duty on mobile transactions will increase from the current 10% to 12%. Similarly, we will charge Excise Duty of 0.05% on bank transfers of KES 500,000 and above.

Kenya Bankers Association has also given the following guidelines on Over the Counter cash transactions effective Sunday, 1st July 2018:

  • Cash transactions of 1 Million (or equivalent in foreign currency) and above will be subject to various levels of approval by the Bank. The cash transaction limits are daily limits and not only limits per transaction.
  • For cash transactions equal to or above KES 10 Million, you will be required to give a three-day written notice of the intention to transact to the Branch Manager, giving the following information:

o   Source of funds (with supporting evidence) for deposit transactions

o   For withdrawal transactions, for what purpose are the funds being used?

o   Why RTGS cannot be used

o   ID/Passport copies of person to make the cash transaction

o   ID/Passport copies of all payees /beneficiaries

  • You will be required to provide the above information by filling and duly signing the Large Cash Declaration Form which will be available at the Branch
  • These guidelines are to be applied alongside the existing Central Bank Prudential Guidelines and provisions of the Proceeds of Crime and Anti-Money Laundering Act/Combating the Finance of Terrorism (POCAMLA/CFT) regulations

The above notices are effective 1st July 2018. For more information visit your nearest branch or contact us here.