This archive report was first published on 24 September 2019.
Between June and August, the Central Bank of Kenya (CBK) received 100 million out of 217.6 million old series Ksh.1000 notes in circulation before June 1, 2019, leaving 117.6 million pieces uncollected.
According to data compiled by the CBK, the majority of transactions during the demonetization process were valued at less than Ksh.1 million, indicating low cash holdings among Kenyans.
CBK Governor Patrick Njoroge attributed the low cash holdings to the fact that 'you just don't walk around with Ksh.100,000 in your pocket.' He also stated that 'there are those who have thrown at me a number of people holding hundreds of millions of shillings. Hio mimi sijui (I don't know about that)'.
While the CBK did not disclose the total amount of old Ksh.1000 notes collected, the data suggests that less than 'imagined' cash was held outside the financial system.
CBK's Patrick Njoroge emphasized the importance of prioritizing a smooth transition of the demonetization process, saying 'you could have run the marathon well for the first 26 miles only to end up with a DNF.'
