By Benadeta Mwaura - Reporter
30 December 2025 - With millions of East Africans relying on money sent home from overseas, official remittance channels and regulatory frameworks in Kenya and Ethiopia are under scrutiny as authorities push for secure, licensed services and crack down on informal money transfer operators.
Remittances, funds sent by migrants to family, business associates or communities back home, form a vital source of foreign exchange for many developing economies.
In Kenya and Ethiopia, regulators say that using licensed, compliant channels helps protect consumers and prevent fraud, money laundering and related financial crimes.
The Central Bank of Kenya (CBK) regularly publishes a directory of licensed Money Remittance Providers (MRPs) authorised to receive and pay out cross-border funds.
These providers must meet strict regulatory requirements, including capital adequacy, anti-money laundering (AML) systems and consumer protection standards.
Some of the currently licensed remittance providers operating across Kenya include, among others:
- Amal Express Money Transfer Ltd — Eastleigh, Nairobi
- Amana Money Transfer Ltd — Eastleigh, Nairobi
- Bakaal Express Money Transfer Ltd — Eastleigh, Nairobi
- Continental Money Transfer Ltd — Ecobank Towers, Nairobi
- Dahabshill Money Transfer Ltd — Standard Street, Nairobi
- Flex Money Transfer Ltd — Ngong Road, Nairobi
- Global Money Transfer Ltd — Eastleigh, Nairobi
- Hodan Global Money Remittance & Exchange Ltd — Kaunda Street, Nairobi
- Iftin Express Money Transfer Ltd — Muindi Mbingu Street, Nairobi
- Juba Express Money Transfer Ltd — Kaunda Street, Nairobi
- Junction Forex & Money Remittance Ltd — Ngong Road, Nairobi
- Kaah Express Money Transfer Ltd — Eastleigh, Nairobi
- Kendy Money Transfer Ltd — Sameer Business Park, Nairobi
- Real Value Money Transfer Ltd — Eastleigh, Nairobi
- Safaricom Money Transfer Services Ltd — Westlands, Nairobi
- Tawakal Money Transfer Ltd — Standard Street, Nairobi
- UAE Exchange Money Remittance Ltd — Kimathi Street, Nairobi
- Upesi Money Transfer Ltd — NHIF Building, Nairobi
It is also important to note that this list is indicative; the CBK’s full directory contains additional registered entities.
CBK and other regulators emphasise that only these licensed providers can legally receive funds from abroad and remit them to recipients in Kenya.
Using unlicensed channels exposes senders and recipients to fraud, loss of funds, and lack of legal recourse in case of disputes.
Remittances to Kenya originate from multiple global regions, including:
United States, which is one of the largest sources of remittances to Kenya via official channels like Western Union, MoneyGram, WorldRemit, and bank transfers.
United Kingdom and Europe, a very significant senders via global fintech services like Remitly and Wise although Wise’s operations have faced limitations for new Kenyan accounts, according to user reports and, Gulf States, which has sizeable remittances tied to migrant workers in UAE, Saudi Arabia and Oman.
Many Kenyan diaspora use a mix of licensed remittance providers and digital platforms for both cost and convenience, including M-Pesa Global, WorldRemit, Remitly, Western Union, and increasingly crypto-based transfers such as USDT on exchanges like Binance, though the latter carries regulatory and security considerations.
The National Bank of Ethiopia (NBE) also regulates remittance and money transfer agencies. The central bank emphasises that only licensed MTAs are authorised to handle international transfers, and engaging with unlicensed firms is illegal and may lead to financial loss and fraud risk.
An official NBE list as of April 1, 2025 includes dozens of providers licensed to handle inbound and outbound remittances.
These operators are licensed by the National Bank of Ethiopia to handle cross-border remittances and are relevant to Kenyan users because they also operate in Kenya or are known international providers with Kenya links:
1. Safari M-Pesa Mobile Financial Services Plc
2. Equity Bank (Kenya) Limited
3. Iftin Express Ltd
4. Shaka Express Corp. Flex Money Transfer Ltd
5. MoneyGram
6. Western Union International Money Transfer
7. WorldRemit Ltd
8. Remitly Inc.
9. Paypal Inc.
10. World Wide / Cash Express Ltd / Al-Alansari Exchange LLC
These firms are not Kenyan but are licensed in Ethiopia and commonly used by diaspora in Kenya for remittances to Ethiopia and other African destinations,
1. Telebirr Remit
2. MoneyGram (global)
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3. RIA Financial Service
4. Small World Financial Services
5. Zeepay Ghana Ltd
6. TAPTAP SEND UK LTD
7. African remittance fintechs like Afriex Inc
8. International banks like Doha Bank and CAC International Bank
It is also important to note that this list is indicative; the NBE’s full directory contains additional registered entities.
These licensed remitters allow Kenyans, including the diaspora in Europe, the U.S., Middle East and elsewhere, to securely send funds to relatives or business partners in Ethiopia through formal, regulated channels, avoiding the risks associated with unlicensed operators e.g., loss of funds, fraud or legal issues.
However, the NBE has also publicly flagged several remittance firms that are not licensed to send or receive remittances in Ethiopia, and any funds sent via these channels risk being lost or confiscated. These names do not appear on Ethiopia’s official list of licensed MTAs.
1. Shgey Money Transfer
2. Adulis Money Transfer (ADZ)
3. Red Sea
4. Avanti
5. World Direct Link
6. Rasmy Pay
7. USwyre
8. Zola
9. Taaj Financial Service
NBE has launched public notices warning against the use of unlicensed MTAs and illegal hawala networks, informal remittance channels widely used in parts of the Horn of Africa that bypass formal banking controls.
These hawala systems pose legal and security risks, including money laundering and financial fraud.
In August 2025, Ethiopia reportedly banned several U.S.–based remittance services for alleged illegal operations, anti-money laundering concerns and potential market abuse, highlighting heightened regulatory scrutiny in cross-border money transfers.
Regulators argue that licensed remittance services, Protect senders and recipients through compliance with AML and consumer protection rules, Ensuring transparency of fees and exchange rates, often lower and more predictable than unregulated networks and helps maintain financial integrity by tracking cross-border flows and reducing illicit finance risks.
The World Bank’s global remittance price database typically shows that the average cost of sending remittances (e.g., $200) through official channels remains high, often exceeding 10 per cent of the value, but using informal or illegal services increases risk without cost advantage.
Despite regulatory frameworks, unlicensed and informal channels persist across both Kenya and Ethiopia.
CBK has warned that using unlicensed MTAs transactions and unregulated remittance agents reduce official remittance inflows and deny consumers legal protections, leading to potential losses and fraud for senders and recipients.
Similarly, NBE cautions that using hawala, unlicensed MTAs exposes both senders and receivers to legal penalties and financial risk, emphasizing that licensed institutions must handle all legitimate remittances.
Community users also share mixed experiences with international payment platforms, from convenience and speed to frustrations over downtime or limits imposed by banks, especially for smaller transfers and SWIFT payments.
Regulators in both countries continue to strengthen oversight of remittance channels, with an eye on, enhancing consumer protection, encouraging digital remittance adoption, reducing transaction costs and clamping down on illicit and unlicensed operators
With remittances remaining a critical source of foreign exchange and household income, especially in developing economies, a balance of accessibility, cost-effectiveness and regulatory compliance will shape the future of cross-border money transfers in East Africa.
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