This archive report was first published on 30 August 2019.
Published on August 30, 2019, Kenya's demonetization of KSh1,000 notes is set to conclude in a month, with approximately 100 million out of 217 million notes converted so far.
Central Bank Governor Patrick Njoroge sees the demonetization process as a means to rid Kenya of the old notes and give the country a fresh start.
While the conversion of the 1000 note is a significant achievement, Governor Njoroge notes that it is too early to draw conclusions, as some Kenyans prefer to wait until the last minute.
He also warns that individuals with proceeds from crime may shy away from the process to avoid scrutiny, and that demonetization may not convert all liquid currency in the economy.
However, the governor believes that demonetization will achieve its success if it helps diminish the wealth of individuals who stole hard cash, and that the war against corruption will be a key factor in preventing the need to demonetize again in the near future.
Furthermore, the growth of digital cash platforms such as M-Pesa will promote a society with less cash, reducing the need for demonetization and the associated theft.
