Alexander, Garcia and Alder [1] introduced the Consistent Boltzmann Algorithm (CBA) as a simple variant of Direct Simulation Monte Carlo (DSMC) for dense gases. In CBA, collisions alter both the positions and velocities of the particles. In the present work the limiting kinetic equation for CBA is derived; the formulation is similar to the proof that the Boltzmann equation is the limiting kinetic equation for DSMC [11]. The relation between this new kinetic equation and the Enskog equation is outlined. ©2001 American Institute of Physics.