More Than Ksh 100 Billion Of Old 1,000 Banknotes Still In The Hands Of Individuals

With less than 8 days remaining to the end of the ongoing demonetization process, the CBK says more than 100 billion shillings of old 1,000 banknotes is still in the hands of the public.

According to the Central Bank of Kenya, more than 100,000,000 pieces of 1,000 banknotes are still in circulation as the deadline for the ongoing demonetization process nears.

In a rush against time, Kenyans have until the 30th of September 2019, to exchange all the old 1,000 banknotes with the new generational banknotes.

CBK says no time will be added for Kenyans to exchange the old 1,000 banknotes after the September 30th.

Already some supermarkets have issued a directive to their customers that they will not be accepting the old 1,000 banknotes from 24th of September (Tuesday).

Some M-Pesa agents across the country have also started rejecting the deposit of the old 1,000 banknotes saying customers who come to withdraw are not accepting them either.

In an effort to stop money laundering for Kenyans who might be holding on the billions still in circulation, CBK has flagged 800 bank accounts as possible channels that might be used to deposit huge amounts of money.

The move by CBK makes it very difficult for individuals with large amounts of the old 1,000 banknotes to deposit at banks or exchange with the new generational banknotes.

What will happen if more than 100 billion shillings will becomes “mere paper” after the 30th of September?

Will the economy feel the heat given that few new generational banknotes will be in circulation?

What is the Central Bank of Kenya doing to ensure that enough new 1,000 banknotes will be in circulation?

The CBK will be facing off the old 1,000 banknotes after 30th of September. The other old denominations of 500, 200, 100 and 50 will remain to circulate alongside the new ones.

Meanwhile, the clock is ticking. Those still with huge bundles are panicking. What should they do?