This archive report was first published on 2 October 2019.
On October 2, 2019, the Central Bank of Kenya (CBK) announced the successful removal of Ksh 7.39 billion worth of illicit cash from circulation following the demonetization of the old 1000 shillings note.
According to Governor Dr. Patrick Njoroge, 209 million pieces of old notes were converted, with 3,172 illegal transactions flagged during the 4-month window period.
Despite the success of the demonetization process, the CBK revealed that individuals still possess the now obsolete 1,000 shillings notes worth over Ksh 7 billion.
CBK Governor Dr. Patrick Njoroge stated, '7,386,000 pieces of KSh 1,000 did not return. This means Ksh 7,386,000,000 became worthless pieces of paper. The value of money that did not come back is equivalent to the value lost during the Goldenberg case.'
The CBK boss suspects that the amount is in the hands of individuals who were afraid to submit the monies due to accountability issues, urging investigative agencies to continue probing the 3,172 transactions flagged off during the demonetization period.
CBK has released 149 million pieces of new generation 1,000 notes to ease the scarcity of the currency, allaying fears of inflation due to the demonetization process.
