This archive report was first published on 19 September 2019.
As the deadline for withdrawing the old Sh1,000 shilling note approaches, the retail sector is gripped by confusion. With banks set to close on September 30, 2019, traders are unsure how to handle transactions made using the old notes on the last day.
Traders have a valid concern, as refusing to accept the old notes could leave them with worthless paper and implications for cash flow. Some legal experts warn that retailers who refuse to accept the old notes may face regulatory fines and lawsuits.
The Central Bank of Kenya has been running a campaign to remind Kenyans to exchange the old notes before the deadline, but has remained silent on the issue of accepting the old notes on the last day.
It is imperative that the Central Bank issues a clear direction on this matter to avoid putting retailers at risk of regulatory fines and lawsuits.
