This archive report was first published on 2 October 2019.
On October 2, 2019, the Central Bank of Kenya (CBK) announced that it had received 209,661,000 pieces of KSh 1,000 notes worth KSh 209 billion by the end of September 30, 2019, the deadline for exchanging the old currency.
According to the CBK, a total of 217,047,000 pieces of old KSh 1,000 notes worth KSh 217 billion were in circulation as of June 1, 2019. This means that 7,386,000 pieces of old KSh 1,000 notes worth KSh 7.38 billion were not returned.
CBK governor Patrick Njoroge stated that the unreturned notes had become worthless and would be shredded into tiny pieces. He explained that the process of shredding the notes involves punching and compacting them into briquettes.
The old KSh 1,000 currency ceased to be a legal tender in Kenya on the midnight of Monday, September 30, as per the deadline set by the regulator. The new generation currency, which was unveiled by President Uhuru Kenyatta on June 1, 2019, will replace the old denomination.
The CBK noted that the large old notes were being used for illicit financial flows across the country, partly informing the decision to withdraw the old KSh 1,000 denomination.
