Top 7 Countries Where Kenyan Banks Are Flying Physical Cash To — CBK

Hello and welcome to the Money News Roundup, where we are covering the latest CBK report on how banks transport cash abroad and which countries receive the most — plus, mandatory NTSA training for government drivers.

UK, US & South Sudan Receive Most Cash From Kenya

Ever wondered how banks with branches in multiple countries transport cash for their ATMs? Well, a new Central Bank of Kenya (CBK) survey explains it all. The report, released on Wednesday, showed that the United Kingdom, the United States, and South Sudan are the top recipients of physical cash transported across borders.

Top 7 Countries and Their Share: The Survey on Cross-Border Movement of Cash revealed that the UK was the top recipient, receiving 42% of all the physical cash moved abroad. The US and South Sudan followed, each accounting for 15%, with Switzerland at 12%, the Democratic Republic of Congo (DRC) at 8%, and both Tanzania and Germany receiving 4% each.

The main recipients of physical cash transported across borders are financial services companies that specialise in cross-border payments and foreign exchange. Other recipients include bank customers, counterparties at group subsidiaries, and foreign correspondent banks.

How the Cash Moves: Most banks transport cash by air (59%), while 35% use cargo shipments. Only 6% is moved by road.

Where the Cash Comes From: The bulk of the cash transported across borders originates from customer deposits (63%), followed by group subsidiaries (18.2%), currency exchange agencies (13.6%), and Central Banks in different countries (4.5%).

What CBK is Saying: "The main reason for cross-border cash movement is the repatriation of foreign currency and promoting operational efficiency by meeting the liquidity needs of foreign subsidiaries," the CBK noted.

The report adds, "This pattern reveals a strong financial relationship between Kenya and Western economies, particularly the UK, which collectively — including the USA, Germany, and Switzerland — accounts for over three-quarters of all outflows."

What to Watch: CBK cautioned that cross-border cash repatriations can provide an avenue for criminals to move proceeds of crime across borders without going through regular banking oversight.

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NTSA Rolls Out Mandatory Virtual Training for Government Drivers

The National Transport and Safety Authority (NTSA) has launched a mandatory virtual training program for all government drivers to enhance accountability, safety, and professionalism in public service. The first session, held on July 2, brought together drivers from ministries, state agencies, Parliament, the Judiciary, and independent offices, with a second session for county government drivers set for July 9, as per Kenyans.co.ke.

The training, conducted in partnership with the Government Vehicle Check Unit (GVCU) and the Kenya Institute of Highways and Building Technology (KIHBT), covered topics such as ethical conduct, vehicle maintenance, traffic laws, and fleet protocols, including the use of GKB 1111 police plates and the new generation number plates with advanced security features. Non-compliance could attract fines of up to Ksh20,000.

14 Million Lives at Risk as US Ends USAID Humanitarian Support

The United States has permanently withdrawn funding for global humanitarian assistance through the United States Agency for International Development (USAID), a move projected to result in 14 million deaths worldwide by 2030, including 4.5 million children under five. The Lancet report highlights that the decision will severely affect health programmes in developing countries, particularly in Sub-Saharan Africa, where USAID has played a key role in fighting diseases such as HIV, malaria, and other neglected tropical illnesses.

According to Citizen Digital, the agency, which has provided foreign aid for over six decades, has been replaced by a new assistance model administered directly by the US State Department, focusing only on initiatives that align with the Trump administration’s priorities. Kenya is among the countries already feeling the effects, with healthcare, agriculture, and community programmes facing funding gaps, job losses, and disruptions. US Secretary of State Marco Rubio defended the decision, claiming that despite significant financial aid, many recipient nations failed to support US interests at the United Nations.

Nigeria’s Zenith Bank Eyes Entry into Kenya Through Acquisition

Zenith Bank, Nigeria’s second-largest lender, is in talks for a potential acquisition that would pave the way for its entry into the Kenyan market. This move is part of a broader trend of West African banks expanding their footprint in East Africa.

According to Business Daily, Zenith Bank is holding discussions with a tier-two Kenyan lender, with its senior leadership expected to visit Nairobi within the next three months to advance negotiations on the planned deal.

IMF Concludes Kenya Graft and Governance Assessment

The International Monetary Fund (IMF) has concluded a governance and corruption review in Kenya following a formal request by the government to assess corruption risks across state institutions, including ministries, parastatals, and oversight bodies. The mission involved consultations with anti-corruption agencies, the private sector, and other stakeholders to evaluate the legal and institutional frameworks in place to tackle graft, with findings expected to guide reforms and support economic growth.

The review comes as Kenya negotiates a new financing deal with the IMF, following the collapse of its existing programme amid fiscal challenges. The government and IMF are working to unlock Sh888 billion in loans under new terms, which require credible fiscal reforms, including raising revenue and cutting expenditures. The IMF has warned that future disbursements will depend on Kenya’s progress in governance reforms, tax measures such as VAT restructuring, and steps to manage public debt. Read more on People Daily.