What happened

The Central Bank of Kenya (CBK) has issued a binding directive that requires all M-Pesa and Airtel Money agents to report every case of cash theft to the regulator without delay. The order, announced on the CBK’s official portal, makes reporting mandatory for any loss of cash that occurs during cash‑in, cash‑out or agent‑to‑agent transfers. Agents who fail to comply may face penalties, including fines or suspension of their operating licence. The move is aimed at curbing the rising number of mobile cash thefts that have been reported across the country and restoring confidence in Kenya’s mobile money ecosystem.

Context and background

Mobile money has become the backbone of Kenya’s informal economy, with Safaricom’s M-Pesa handling over Sh30 billion in daily transaction volume and Airtel Money processing a substantial share of the remaining market. The sector’s rapid growth has attracted both legitimate users and criminal elements, leading to a spate of cash‑theft incidents at agent outlets, especially in high‑traffic urban centres such as Nairobi, Mombasa and Kisumu. Historically, agents were encouraged to notify the CBK only when thefts exceeded a certain monetary threshold, but many smaller losses went unreported, creating blind spots in the regulator’s risk assessments.

The new directive builds on earlier CBK guidelines that mandated anti‑money‑laundering (AML) reporting and Know‑Your‑Customer (KYC) compliance for mobile money providers. In 2022, the CBK introduced a “cash‑handling risk framework” that required agents to keep daily cash‑reconciliation logs, but enforcement was uneven. Recent investigations by the CBK’s Financial Intelligence Unit (FIU) revealed that unreported thefts contributed to a 12 percent rise in suspicious transaction reports, prompting the regulator to tighten reporting obligations.

Stakeholders, including the Communications Authority (CA) and the Association of Mobile Money Operators (AMMO), have welcomed the move as a step toward greater transparency. However, some agents expressed concern about the administrative burden, fearing that frequent reporting could divert attention from core business activities. Consumer advocacy groups, meanwhile, argue that mandatory reporting will protect users by ensuring that stolen funds are traced and recovered more quickly, thereby preserving the trust that underpins the mobile money system.

Compared with what is normal

Under the previous regime, agents were expected to file a theft report only when the loss exceeded Sh10,000 or when the incident was deemed “significant” by the agent’s own assessment. In practice, many agents treated the threshold as a guideline rather than a strict rule, resulting in a patchwork of reporting practices. The new CBK order eliminates the threshold altogether, making every theft—whether Sh500 or Sh50,000—reportable. This shift aligns Kenya’s mobile money reporting standards with international best practices, where regulators often require real‑time notification of any loss that could affect financial stability.

• Earlier: Reporting optional for losses below Sh10,000; inconsistent compliance.
• Now: Mandatory reporting for every cash theft, regardless of amount.
• Previous enforcement: Limited to periodic audits; new rule includes immediate electronic filing.
• Impact on data: CBK will receive a higher volume of incident reports, enabling faster trend analysis.

Why it matters

For Kenyan SMEs that rely on mobile money to receive payments, the directive offers a clearer pathway to recover stolen cash and to hold agents accountable. When an agent reports a theft promptly, the CBK can coordinate with law enforcement to trace the missing funds, potentially reducing the financial loss for businesses and individuals. Moreover, consistent reporting improves the regulator’s ability to spot patterns of organized crime, which can lead to targeted interventions in high‑risk areas. For the broader economy, enhanced oversight helps maintain the credibility of Kenya’s mobile money system—a system that accounts for roughly 30 percent of the country’s GDP.

Practical steps

• Ensure every agent has access to the CBK’s electronic reporting portal and understands the submission workflow.
• Train staff on how to document theft incidents, including date, time, amount, and any suspect descriptions, within 24 hours of occurrence.
• Maintain a daily cash‑reconciliation ledger that flags any discrepancy immediately, so that potential thefts are identified early.
• Establish a clear internal escalation protocol: inform the agency manager, then the compliance officer, before filing the formal report to CBK.
• Monitor CBK communications for any updates on reporting templates or additional compliance requirements.

Financial Management & Analysis services at Beavoren Ventures can help your business set up robust cash‑handling controls, design reporting templates that meet CBK standards, and train staff to ensure swift compliance with the new theft‑reporting mandate.

Need help with compliance? Email info@beavorenventures.co.ke or call +254 716 296 857.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.