This archive report was first published on 28 September 2019.
As the deadline for exchanging old Sh1,000 notes approaches, businesses across various sectors are refusing to accept the currency, citing government directives and the need to bank them by midday Saturday.
According to a notice posted by online marketplace Jumia, the e-commerce firm will no longer accept payments using old Sh1,000 notes after September 25, 2019. The notice, which was posted on the company's website, instructed customers to use the new notes, M-Pesa, Visa, or Jumia Pay for all payments.
Similarly, Africa-focused fast-food business Simbisa Brands, which operates Chicken Inn, Pizza Inn, Bakers Inn, and Creamy Inn in Kenya, set September 26, 2019, as the cut-off date for accepting the old Sh1,000 notes. In a text message to customers, the company stated that it would no longer accept the old notes as from September 26, 2019, and urged customers to use lower denominations or other means of payment.
However, a survey at local retail chains Eastmatt, Naivas, Quickmart, Tuskys, and Tumaini showed that the old Sh1,000 currency notes were still being accepted until Saturday. According to Central Bank of Kenya (CBK) data, the Sh1,000 current notes account for 83 percent of the Sh540 billion in circulation, making it a favored currency for those making fake currency and people hiding their wealth from the banking system.
As the rush to exchange the old Sh1,000 notes entered the home stretch, banks were on high alert after the CBK flagged 800 accounts of individuals who may attempt to clean their illicit money.
