This archive report was first published on 7 October 2019.
As of October 7, 2019, a staggering Sh1 billion worth of Sh1 and 50-cent coins were idle in Kenyan homes, cars, and workplaces.
According to the Central Bank of Kenya, a total of Sh833 million worth of Sh1 coins and Sh137 million worth of 50-cent coins were in circulation.
However, shoppers and retailers have increasingly opted for the convenience of notes over coins, rendering these low-value currencies nearly unusable.
This has led to a wave of price increases as retailers set prices in multiples of fives and tens, affecting low-income earners and the middle class.
A pump attendant may display a price tag of Sh121 per litre but force the buyer to accept more fuel by paying up to Sh150 or Sh200, simply because these figures are rounded off.
A supermarket may have a product valued at Sh497 but ask the buyer to pick up sweets in place of the Sh3 change.
To address this issue, the Central Bank of Kenya must consider introducing low-value notes, starting from Sh1, to ensure the close to Sh1 billion trapped in Sh1 and 50-cent coins is redeemed.
