DEMONETISATION

A half of old Sh1000 notes returned ahead of September 30 deadline

CBK is currently engaged in a massive sensitisation campaign aimed at reaching most people in the country

In Summary

• CBK issued rules to guide replacement of the Sh1,000 notes, which accounted for 83 per cent of the Sh540 billion in circulation or Sh217 billion.

• The amount of Sh1,000 old notes in circulation is valued at Sh217 billion.

The new look Kenyan currency notes.
The new look Kenyan currency notes.
Image: ENOS TECHE

About 100 million pieces of the old Sh1,000 note had been returned to the Central Bank of Kenya by end of August ahead of September 30 deadline.

This translates to about 50 per cent of old Sh1,000 in circulation, meaning members of the public exactly 24 days to return remaining 117 million pieces of old notes which will be obsolete come October 1.

This means, almost five million old notes are to be returned daily to achieve 100 per cent demonitisation.

 

The amount of Sh1,000 old notes in circulation is valued at Sh217 billion.

Speaking during an interview on Citizen TV, CBK governor Patrick Njoroge said about 100 million pieces have been returned but the exact number will only be determined at the end of the exercise.

"It doesn't really indicate much whatever we have now. It is quite possible some have delayed the conversion until the very last minute," Njoroge said.

He added that those holding illicit cash will find it impossible to bring it back into the financial system hence the true picture will only be known on October 1.

The regulator announced the phasing out of old sh1000 notes when it unveiled new generation notes during this year’s Madaraka Day celebration.

All other denominations are unaffected and will continue to circulate alongside the new generation banknotes.

On June 4, CBK issued rules to guide replacement of the Sh1,000 notes, which accounted for 83 per cent of the Sh540 billion in circulation or Sh217 billion. The Sh500 notes accounted for 5.9 per cent, Sh200 (4.2 per cent), Sh100 (4.8 per cent) and Sh50 (1.9 per cent).

 

CBK is currently engaged in a massive sensitisation campaign aimed at reaching most people in the country.

 

The regulator is urging members of the public to use the window period to replace old Sh1000 notes, insisting that no additional time will be granted.

"Those notes will be mere papers come October 1. We have enough new notes in circulation, people should follow necessary procedure and exchange at nearest banks or CBK," Njoroge told Radio Jambo early last month.