This archive report was first published on 1 October 2019.
On September 21, a money dealer in Eastleigh was approached by a man claiming a politician wanted to exchange old Sh1,000 notes for US dollars. The dealer packed Sh15 million and headed to a restaurant in Upper Hill to meet the politician, only to be robbed.
Police arrested four suspects in connection with the robbery, with one arrested in Nairobi and three in Mombasa. The incident occurred during the rush to exchange old currency before the September 30 deadline set by the Central Bank of Kenya (CBK) on June 1.
The CBK had announced plans to withdraw all old currency from circulation by October 1, 2019, as part of efforts to counter counterfeits, corruption, and money laundering. The government had also introduced new currency, and individuals exchanging less than Sh1 million of the old notes were instructed to do so through currency centres, CBK branches, and commercial banks.
The old generation banknotes became worthless from October 1, 2019. The incident highlights the risks associated with the demonetization process, which has led to cases of fraud and counterfeiting.
