This archive report was first published on 2 October 2019.
On October 2, 2019, the Central Bank of Kenya (CBK) announced that Kenyans had returned Sh209.6 billion in old Sh1000 notes out of the Sh217 billion in circulation as of June 1, when the new look currency was introduced.
However, this left a significant amount of unreturned notes, with CBK governor Patrick Njoroge stating that Sh7.38 billion in old Sh1000 notes did not return to the banking system by the October 1 deadline.
"The demonetisation process progressed very well," said Dr Njoroge at a briefing. "We did well and we are happy with the outcome."
Despite the stringent rules put in place to discourage illicit money exchange, Dr Njoroge maintained that the exercise was a success, citing the anti-money laundering measures as effective.
"The anti-money laundering measures we put in place were a success," said the governor. "Whoever is holding this (unreturned money) is poorer."
The returned money will be shredded and turned into briquettes, said the governor.
