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Central Bank's New Currency Plan Faces Legal Hurdles

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 5 July 2019.

On June 27, 2019, the Clerk of the National Assembly, Michael Sialai, wrote to activist Okiya Omtata in response to his request for information on the tabling of the motion for the new currency in Parliament. The letter confirmed that the Central Bank of Kenya did not follow due process in introducing the new currency.

According to the letter, the Central Bank failed to transmit the necessary legal notices to the National Assembly within the required 7-day period. This means that the move by the Central Bank in December 2018 and May 2019 to announce the issuance of new notes and coins and demonetize the old Ksh.1000 tender is unlawful.

Activist Okiya Omtata, who has been petitioning against the new currency, welcomed the development. He stated that the Clerk of the National Assembly's confirmation means that the new coins and notes have no legal standing. Omtata has since announced plans to amend his petition to include the invalidation of the new currency coins.

The matter is set to be heard by a three-judge bench, empaneled by Chief Justice David Maraga. The hearing date will be notified to the parties involved.

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