Conversion of Kenyan currency suspended in Uganda
Uganda has joined Tanzania in suspending the conversion of Kenyan Shillings as a measure to tame illicit cash flows.
In a statement issued on Monday, Bank of Uganda said it had been informed by the Central Bank of Kenya (CBK) that they have issued new banknotes effective May 31, 2019.
“Bank of Uganda will not accept Kenya Shillings at its counters with immediate effect,” Bank of Uganda said in a statement.
“Please be advised that changing Kenyan currency from old to new banknotes can only be done in Kenya,” the statement further read.
On Friday the Bank of Tanzania also suspended conversion of Kenyan currency to Tanzanian currency.
According to Tanzanian financial institution, they were advised to freeze the exercise by Central Bank of Kenya (CBK) in a move to tame illicit cash flows.
“With a view to combat illicit financial flows and counterfeits into the Republic of Kenya, the Bank of Tanzania has been advised to freeze CBK Currency Collection Account with immediate effect,’’ the statement read in part.