This archive report was first published on 24 September 2019.
As the September 30 deadline for exchanging old KSh 1,000 notes approaches, the Central Bank of Kenya (CBK) has revealed significant progress in the demonetisation process.
CBK Governor Patrick Njoroge announced on September 24, 2019, that the regulator had received up to 116 million old KSh 1,000 notes since the demonetisation process kicked off on June 1, 2019.
Notably, 53% of the conversions happened during the last two weeks of June, with most transactions processed by the regulator being below KSh 2 million. Only 24 transactions were above KSh 2 million, averaging at KSh 3.1 million.
CBK believes the demonetisation will help deal with money laundering and net people holding proceeds of illegally acquired wealth.
Uganda and Tanzania have finished converting the old KSh 1,000 notes and repatriated them to Kenya, CBK revealed.
CBK is in talks with police, courts, and prisons to ensure old KSh 1,000 notes they held as exhibits were exchanged.
There will be no penalty for those who will be holding the old currency past the deadline, but the money will cease being legal tender.
