Kenyans did not return Sh7bn of old generation Sh1,000 notes: CBK
More than Sh7 billion of the old generation Sh1,000 notes have become worthless, Central Bank of Kenya (CBK), Governor Patrick Njoroge has said.
This is after only 7,386,000 pieces were returned by the October 1, 2019 deadline.
Governor: 7,386,000 pieces of KSh 1,000 did not return. This means KSh 7,386,000,000 became worthless pieces of paper.
— Central Bank of Kenya (@CBKKenya) October 2, 2019
According to Njoroge, the demonetisation of the old generation Sh1,000 notes was to deal with illicit financial flows and counterfeits in the country.
“Demonetisation was to deal with illicit financial flows and to deal with counterfeits, and the currency of choice was the old Sh1,000 note. The reasons for this went to the furthest corners of the country. In designing the demonetisation strategy, we looked at the experience of other countries and learned from them. We wanted to minimise the disruption to the economy while enhancing effectiveness,” said Mr Njoroge.
“The demonetisation process proceeded very well. In value terms: Up to Sh500,000 were 62 percent, Up to Sh1,000,000 were 79 percent, Up to Sh2,000,000 were 92 percent. In number of transactions: 96 percent of transactions were under 500,000, 99 percent of transactions were under Sh1,000,000. 7,386,000 pieces of Sh1,000 did not return. This means Sh7,386,000,000 became worthless pieces of paper,” Njoroge further said.
The new generation banknotes were unveiled on June 1, during the Madaraka Day celebration.
New Sh50, Sh100 Sh200, Sh500 notes were also unveiled.
However, these new notes will circulating alongside the old ones but a deadline was put only for the Sh1,000 note.