This archive report was first published on 2 October 2019.
CBK Destroys Worthless Sh209 Billion in Old Sh1,000 Notes ¶
As of September 30, the Central Bank of Kenya had collected 209,661,000 pieces of the old Sh1,000 notes, worth Sh209 billion. This is a significant milestone in the demonetisation process, which aimed to remove the old currency from circulation.
However, not all old Sh1,000 notes were returned. According to CBK Governor Patrick Njoroge, 7,386,000 pieces of the former Sh1,000 notes, worth Sh7 billion, were not returned. This means that these notes became worthless pieces of paper.
On the other hand, the new Sh1,000 notes have been well-received. By September 30, 149,692,000 pieces of the new Sh1,000 notes, worth Sh149 billion, were in circulation.
CBK Governor Patrick Njoroge praised the demonetisation process, saying it proceeded very well. He also noted that the process had robust anti-money laundering frameworks in place to ensure its effectiveness and smooth running.
During the demonetisation period, CBK conducted 15 targeted inspections, which is higher than in normal periods. Additionally, 3,172 suspicious transactions were flagged, and some of the stories about people buying big-ticket items in cash were deemed fanciful.
The demonetisation process had no impact on the inflation rate or exchange rate, according to Njoroge. He also dismissed the hypothesis that Kenyans are procrastinators, saying it was disproved through this process.
CBK Governor Patrick Njoroge concluded that the demonetisation process was successful because it was completed smoothly, with anti-money laundering filters firmly in place, and kept out money whose owners did not want to be subjected to the relevant checks in the system.
