KSh263 Billion in New Currency Bank Notes in Circulation -CBK

David Indeje is Khusoko’s Digital Editor, covering East African markets.
The Central Bank of Kenya (CBK) has published a discussion paper on Central Bank Digital Currency (CBDC) inviting comments from the public aimed at ensuring an informed policy review regarding financial sector innovations.

Dr Patrick Njoroge, CBK Governor Displaying some of the new currency Notes

KSh263 Billion is in circulation according to the Central Bank of Kenya after announcing on Saturday that it will be withdrawing the old version of its 1,000 banknotes.

On Monday, Dr. Patrick Njoroge, the CBK Governor said they will continue to release the New Generation Currency banknotes to all commercial banks and microfinance banks. “We’re ensuring that there is enough cash in all the bank branches.”

The Governor emphasised that the October 1 deadline is meant to give time for the withdrawal of the banknotes because we need to take care of our people. “We need to ensure Wanjiku has all the relevant information and has enough time for the changeover.”

He also reiterated that All ‘know your customer’ (KYC) rules will be applied when depositing money for bank customers.

Rules in Exchange of Old Notes

“People who want to exchange the old notes for a value of less than Ksh 1 million can do so at their bank branches. People without bank accounts can exchange at any branch of any bank, or even at the CBK. They will need to have official identification.

People who want to exchange amounts between Ksh 1 million and Ksh 5million will need to go to their own banks. Those who do not have bank accounts and want to exchange this amount will need to contact the CBK. We will then endorse them and they can go to a designated bank branch.

People who want to exchange amounts above Ksh 5 million will need to contact the CBK. We have, however, analysed these and found that these are very few.”

The new currency aims to stem corruption, illicit financial flows as well as curb prevalence of counterfeit money that is currently in high circulation.

“Illicit financial flows involving the Kenya Shilling are not just in Kenya. They also affect our neighbouring countries. We looked at the matter of demonetisation in India and learned from it. Demonetisation is a tool of central banking, and has happened even in Kenya. We demonetised at the end of 2011, including the 5-shilling note,” He noted.

David Indeje is Khusoko’s Digital Editor, covering East African markets.

In my role as Community Engagement Editor For Khusoko, I care about our audience. engaging them, getting news delivered to them across a variety of platforms, and expanding the diversity of voices on our website.

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