The Kenyan currency papers have seen a major change after president Uhuru Kenyatta on Saturday unveiled the new-generation bank notes during the Madaraka Day celebrations at Narok Stadium.
The president was invited by Central Bank of Kenya (CBK) Governor Patrick Njoroge to launch the new notes.While speaking at the ceremony, Njoroge stated that the notes were already in circulation.
“The Central Bank of Kenya has completed the process of producing the new-generation bank notes in accordance with the Constitution all the laws.
CBK has said old Ksh.1000 notes should be out of circulation by October 1 this year. The move is intended to fight counterfeit practises.
Njoroge further revealed that all the older 1000 ksh series shall be withdrawn. All persons have until October 1 2019 to exchange these notes, after which the older ones will cease to be legal tender
CBK Governor Patrick Njoroge: All the older 1000 ksh series shall be withdrawn. All persons have until October 1 2019 to exchange these notes, after which the older ones will cease to be legal tender.#MadarakaDay in Narok. pic.twitter.com/JarHEDXXRd
— The Standard Digital (@StandardKenya) June 1, 2019
Analyst opine that corrupt individuals who have been keeping huge sums of money will now be compelled to bring their cash to the banks to exchange for the new currency.
It is expected that banks will put them to account to explain where the money is coming from.
Crisp banknotes of various denominations may be lining the pockets of many in Kenya, but it is the Sh1,000 note that stood out from the crowd despite its high value.
The data, drawn from CBK banking supervision reports, revealed that the Sh1,000 note, popular for its elephant symbol, was increasingly being preferred in transactions as other denominations such as Sh 500 and Sh 200 note drag.
Whereas the pieces of Sh1,000 notes in circulation were valued at Sh 210.37 billion by end of June last year, those of Sh 500 were only Sh 16.31 billion. This is a value gap of Sh 194.06 billion.
The increased popularity of Sh1,000 notes beat the popular view that lower denomination notes such as Sh 50 and Sh 100 are on high demand in meeting daily transactions.