Only 24 Individuals Returned Over Ksh 2 Million of Old 1,000 Banknotes

When the Central Bank of Kenya (CBK) announced the deadline for the exchange of the old 1,000 banknotes with the new generational notes, it was expected that individuals with huge amounts would turn up.

The move, among other things, was aimed at flagging individuals who would make large transactions, especially above 5 million shillings in which they were required to state the source of the funds.

It appears Kenyans who were thought to be holding bundles of the old 1,000 banknotes were smarter than those at the Central Bank of Kenya as only 24 individuals transacted above 2 million shillings in a period to August.

According to data given by CBK, the majority of transactions to exchange the old notes with new ones oscillated between 1 million shillings and below.

“A lot of conversions are in small value and this fits well with how we saw things. You just don’t walk around with 100,000 shillings in your pocket. Not so many people live this lifestyle,” said Dr. Patrick Njoroge, Governor for the Central Bank of Kenya.

Kenyans have up to Monday to get rid of all the old 1,000 banknotes in exchange with the new generational notes. Already various businesses including the Standard Gauge Railway (SGR) have stopped taking the old notes.

Before the exchange kicked off, the CBK said that there were 217.6 million pieces of the 1,000 notes were in the hands of Kenyans. So far, the CBK has collected 100 million pieces meaning more than 117 million pieces are still in the hands of Kenyans.

The Central Bank has raised an alarm over the spike of the old 1,000 notes in Narok County where businessmen are buying wheat using cash with concerns that some people might be trying to use the trade to clean their money.

It is not yet clear how the CBK will collect the remaining 117 million pieces or how that will affect the circulation of the currency if they won’t be collected.