This archive report was first published on 2 October 2019.
Kenya's Central Bank (CBK) has announced the outcome of the country's currency swap, which saw the introduction of new Ksh1,000 notes in June. As of June 1, there were Ksh217 billion ($2.17 billion) in circulation, but by the time the deadline for exchanging old notes expired on October 1, only Ksh209.6 billion ($2.096 billion) had been returned.
This means that approximately Ksh7.38 billion ($73.8 million) of the old currency did not make it back to the banking system, despite the stringent rules put in place to prevent illicit financial flows and counterfeiting.
CBK governor Patrick Njoroge described the demonetisation process as a success, citing the anti-money laundering measures that were implemented as a key factor in its success.
"The demonetisation process progressed very well," Dr Njoroge said at a press briefing on October 2, 2019. "We did well and we are happy with the outcome."
The unreturned money will be shredded and turned into briquettes, the governor announced.
Dr Njoroge also pointed out that those who failed to exchange their old notes are now poorer, as they have lost the value of their unreturned currency.
