The government is set to use at least 15 billion shillings to enable the full rollout of the new currency according to the Central Bank of Kenya governor Dr. Patrick Njoroge.
According to the governor, the exercise is to take at least three years and said that CBK will strive to complete the exercise within the stipulated time.
“We do not hope to go beyond three years and plan to spend 15 billion shillings, every year the government incurs expenditure that entails mopping all old notes as well as printing new ones,” he said.
The new currency was launched during the 2019 Madaraka Day celebrations that took place in Narok County by President Uhuru Kenyatta.
The CBK officially rolled out the 50, 100, 500 and 1,000 new generational notes which it insists is in accordance with the requirements of the constitutions.
The 50, 100 and 500 banknotes will be used alongside the old ones according to the CBK governor. The 1,000 old banknotes, however, will completely be withdrawn from circulation by the month of October 2019.
Some people have raised concerns that the timelines given by CBK will not be enough to mop up all the 1,000 old notes from the economy.
The CBK says that it hopes to collect at least 83 percent of the current 1,000 banknotes by 1st of October this year and said the exercise will not affect the economy in any way.
There are a total of 217.6 million pieces of 1,000 shillings in circulation in Kenya according to a statement by the Central Bank of Kenya (CBK).
There are 30.8 million pieces of 500 shillings, 54.8 million pieces of 200 shillings, 126.4 million pieces of 100 shillings, 100.5 million of 50 shillings and 9.9 million pieces of 20 shillings.
Do the new generational notes follow the requirements by the constitution? Article 231 (4) of the Constitution of Kenya states that “Notes and coins issued by the Central Bank of Kenya may bear images that depict or symbolize Kenya or an aspect of Kenya but shall not bear a portrait of any individual.”