This archive report was first published on 16 September 2019.
As the deadline for the old Sh1,000 note draws near, retailers in Kenya are facing a difficult decision. With the Central Bank of Kenya (CBK) set to withdraw the old note from circulation on September 30, 2019, businesses are worried about how to deal with the large volumes of cash they will receive on the last day.
According to an interview with Naivas CEO Willy Kimani, the biggest concern for retailers is how to handle the old notes they will collect on the last day. Kimani stated, 'The biggest concern for us is deadline day. We may be forced to stop accepting old notes earlier.'
CBK has launched a mobile-based SMS campaign to remind consumers to return the old Sh1,000 notes before the deadline, but the bank has not provided clear guidance on what retailers should do. In response, some retailers are planning to bank all the cash collected on September 30 to avoid being left with worthless money the following day.
The issue of fake currency has also been a concern for retailers. Investigations have revealed that counterfeiters are getting better at imitating the new notes, and small traders and M-Pesa shop owners have been easy targets. In July, police in Kandara, Murang'a County, arrested two men and a woman who were found with fake money in two separate incidents.
As the deadline approaches, retailers are bracing themselves for the challenges that lie ahead. With the fake currency syndicate spreading its tentacles into Nairobi and Kiambu counties, businesses are worried about how to protect themselves from the counterfeiters.
