This archive report was first published on 30 June 2021.
June 3, 2019, marked the launch of the new-generation currency notes in Kenya, a move that aimed to improve the country's financial system. However, nearly two years later, the notes were found to be worn out, sparking concerns among the public.
The Central Bank of Kenya (CBK) has attributed the worn-out state of the new-generation currency notes to 'bad handling habits' of the public. CBK Governor Patrick Njoroge appeared before the Senate Committee on Finance and Planning to address the concerns raised by the public.
According to Njoroge, the new banknotes have a certain varnish on them to reduce wear and tear, and they are supposed to last one year compared to the old-generation banknotes that lasted six to nine months. The new notes also come with improved security features and edges that allow visually impaired persons to tell the difference between the denominations.
However, Nominated Senator Rosa Nyamunga raised concerns over the quality of the currency notes, especially the Sh50 note. She stated that poverty contributes to the mishandling of the currency notes, with some people crumbling and hiding them in pockets and knots in clothes.
Senator Nyamunga urged the CBK to boost the quality of the notes to cut the expense of printing new ones. She also questioned the CBK's use of an additional Sh833 million in currency generation in the financial year 2019/2020 compared to Sh2.3 billion used in the financial year 2018/2019.
CBK Governor Njoroge stated that following the launch of the new-generation notes, many people engaged in destructive testing, which involved crumbling the notes to see what happens. He also mentioned that the Sh50 note circulates quickly due to its common use in matatu fares and other transactions.
