This archive report was first published on 19 September 2019.
Published on September 19, 2019, retailers in Kenya are rejecting the old Sh1,000 currency, despite it remaining legal tender until October 1.
According to senior counsel Ahmednasir Abdullahi, the old notes remain legal until September 30, and retailers rejecting them could be sued and punished by the Central Bank of Kenya (CBK).
"The old notes remain legal until September 30. Why should they refuse?" posed Abdullahi, adding that customers can sue the firms barring customers to transact in the older notes before the deadline.
Several retailers, including supermarkets and eateries, have issued notices to customers stating that they will not accept the old notes between September 26 and 29, a day ahead of the CBK deadline for withdrawal.
The government had issued an order for the withdrawal of the older version of Sh1,000 notes by October 1 following the introduction of new notes to tackle illicit financial flows and counterfeiting.
The older Sh1,000 notes accounted for 83 percent of the Sh540 billion in circulation, as per the CBK June data.
"Dear customer, as per the government directive, we will not be accepting the old Sh1000 note as from September 26, 2019. Kindly use lower denominations or other means of payment," fast-food chain Pizza Inn said in an SMS notice to its clients.
Top retailers had a similar notice, with Naivas Chief Commercial Officer Will Kimani stating, "We are taking precaution not to find ourselves with notes that we can’t bank. We are, therefore, going to cease taking the notes from 29th Sunday night."
