This archive report was first published on 24 September 2019.
As the September 30 deadline for phasing out old KSh 1000 notes approaches, the Central Bank of Kenya has expressed concern over the sudden spike in purchase of wheat using old cash.
According to a statement issued on September 24, 2019, the CBK boss Patrick Njoroge clarified that there would be no penalty for keeping the old money, but warned those who would not have exchanged their old cash after September 2019 would be left with worthless currency.
"There is no penalty for holding the older KSh 1000 notes after September 30, but you will have lost the value of your money," Njoroge said.
The regulator further warned action will be taken against any financial institution found flaunting the rules and guidelines as stipulated under POCAMLA.
"The CBK shall take appropriate enforcement action against any commercial bank that fails, neglects or omits to comply with relevant AML/CFT laws and regulations," the letter read.
The Central Bank had in a separate statement advised employers who pay salaries and wages in cash to start paying their employees using the new KSh 1,000 notes.
The workers, it noted, will not be able to use the old KSh 1,000 cash past the deadline for withdrawal of the old currency from circulation.
