DEMONITISATION

Businesses continue to issue cut-off dates for old Sh1000 notes

Yesterday, local retail chain Naivas supermarkets announced that it will only accept old Sh1,000 notes until September 29 midnight

In Summary
  • CBK’s lack of clarity on legality of early deadlines by traders has now opened a floodgate for early deadlines with more businesses joining the frenzy
  • Several businesses and traders started issuing early deadlines last week with some already declining to accept the old currency
A bundle of Sh1,000 notes
A bundle of Sh1,000 notes
Image: FILE

Central Bank of Kenya has said it is not in a position to stop businesses from setting their own deadlines for receiving the old Sh1,00 notes ahead of the September 30 official date.

This even as more business outlets joined the number of those who have issued notices setting their own cut-off dates.

Speaking on Tuesday, CBK governor Patrick Njoroge said businesses have their own mechanism to ensure that they are have valid notes ahead of the deadline. 

"I can't tell whether it is legal or not. Businesses have their own way of complying to the set deadline," Njoroge said.

 
 

He said CBK has been sensitising the public about the demonitisation of old Sh1000 notes and that everyone including traders should make sound decision on the matter.

‘’We are and still playing our sensitisation role. I will be waiting for the close of business on September 30 to put to end this matter. All old Sh1,000 notes will lose value once I append my signature to the days transactions,’’ Njoroge said.

Several businesses and traders started issuing early deadlines last week with some already declining to accept the old currency.

On Saturday, Safaricom Plc issued a notice, alerting the public that M-Pesa shops will not be accepting the old notes after today.

Several Saccos in the country also sent messages to members indicating they will not accept old Sh1000 notes starting today.

Yesterday, local retail chain Naivas supermarkets announced that it will only accept old Sh1,000 notes until September 29 midnight.

 
 

In a notice circulated to all its branches countrywide, the firm explained that it was taking caution in order to provide sufficient time to offload the stock of notes in its possession to its various banking partners.

Naivas chief commercial officer Willy Kimani said the retailer is a strong supporter of the government’s move to introduce the new currency notes and coins.

He added that the retailer had observed a high conversion rate with the stock of new Sh 1,000 notes standing at 92 per cent.

At the same time, Naivas had noted a marked rise in card and mobile transactions.

"The firm has installed cash tills and money counters that can read the new notes as well as detect those that are fake,’’ Kimani said.

Yesterday, several commuter buses in Nairobi had notices warning passengers about the conversion deadline, with some like Star Buses that ply Waiyaki Way saying they won’t accept the old notes starting today.

"The Star Bus company will not be accepting old Sh1000 notes starting (tomorrow) today in complacence with government’s directive through Central Bank of Kenya that after September 30, old notes will become obsolete,’’ the notice read.