This archive report was first published on 21 August 2019.
As part of its efforts to phase out the old KSh 1000 note, the Central Bank of Kenya (CBK) has issued a warning to employers to pay their workers in the new currency by September 30, 2019.
According to the CBK, the old KSh 1000 note will cease to be legal tender from October 1, 2019, and employers who pay their workers in cash will be responsible for ensuring they receive the new currency.
CBK Governor Patrick Njoroge explained that the old note was being used for illicit financial flows in the country and across the region, and that the new currency was being introduced to prevent such activities.
"If you pay your workers in cash, remember to pay them in the new KSh. 1,000 notes. Do not transfer the deadline burden to them. They will not be able to use the old KSh 1000 notes after September 30," said the regulator in a statement shared on Twitter on August 21, 2019.
Employers who fail to comply with the directive risk causing inconvenience to their workers, who will not be able to use the old currency after September 30, 2019.
CBK had announced October 1 as the deadline for the total withdrawal of the old KSh 1000 currency from circulation.
