This archive report was first published on 24 October 2019.
On September 30, 2019, Kenya's Central Bank of Kenya (CBK) successfully concluded the demonetization of old Ksh.1,000 notes, a process that began on June 1, 2019, with the launch of the new generation notes.
The new notes, which symbolize green energy, agriculture, social services, tourism, and governance, were designed to promote a Newly Reborn and Prosperous Kenya.
The CBK assessed the threat posed by the old notes, which were being used for illicit transactions and financial flows, both in Kenya and the region, and the emergence of counterfeits.
To address these concerns, the CBK adopted a four-month demonetization strategy, which included a gradual approach to minimize disruption to the public and the economy.
The strategy involved a multi-channel awareness campaign, which included over 15,000 advertisements, coverage in social media, television, newspapers, and over 80 mainstream and vernacular radio stations.
The CBK also worked closely with banks to ensure a smooth rollout of the new currency and its availability across the country, with special emphasis on far-flung areas.
Existing measures on Anti-Money Laundering (AML) and Combatting Financing of Terrorism (CFT) were applied fully to filter out illicit funds and prevent them from entering the financial system.
A collaborative approach with other official entities was adopted to buttress the strategy, including investigative agencies and other central banks.
As the demonetization concluded, inflation, the exchange rate, and other key macroeconomic indicators remained stable, with no last-minute panic queues outside banking halls.
Old series Ksh.1,000 notes valued at Ksh.7.4 billion became worthless at midnight on September 30, 2019.
The successful conclusion of demonetization marks a significant step in the fight against corruption and illicit finance, and sustained efforts are needed to deliver victory.
The CBK's Governor hailed the successful conclusion of demonetization as a testament to careful preparation and close collaboration with commercial banks, government agencies, other central banks, and the public.
