Central Bank says no extension of Ksh.1000 note withdrawal deadline

Central Bank says no extension of Ksh.1000 note withdrawal deadline
CBK Governor Patrick Njoroge adresses a news conference at the Central Bank's buildings on Tuesday, May 28, 2019 PHOTO | CITIZEN DIGITAL

The Central Bank of Kenya (CBK) has ruled out any extensions to the demonetization deadline set for October 1, 2019.

Speaking at a news conference on Thursday, CBK Governor Patrick Njoroge said any step away from the present window of exchange would fail the purpose of the demonetization directive

“The answer on an extension is no. I know Kenyans love extensions. For us, it would beat the purpose to move the deadline,” he said.

“Kenyans should not wait until October 1. This would be a misinformed position. Between now and October 1 you should see less and less of the old series Ksh.1000 notes.”

Njoroge who seemed upbeat of the roll out of the new notes said CBK is alongside the roll out of new notes working to dispatch information on the key security features to safeguard integrity.

“The priority has not been on just the disbursement of new notes. I would equate it to the distribution of eggs where one has to not only move them around but ensure they don’t break,” he added.

With no recourse on the deadline, Kenyans will still be expected to hand over their old Ksh. 1000 notes by October 1, 2019 as per the original demonetization directive.

The demonetization directive is aimed at ridding the economy off illicit financial flows and counterfeits.

The CBK has to this effect established criteria to ensure for the detective’s efficiency to pair investigative agencies and peer Central Banks in East Africa.

“Our intention is to turn all illicit monies into paper. How we know this is if you fail to establish the source of your funds,” said Njoroge.

The demonetization directive was Gazetted on May 31, 2019 before the launch of the new notes at the Madaraka day celebrations.

Individuals with sums not exceeding Ksh.5 million are at liberty to acquire new notes through their commercial banks while those with sums beyond the Ksh.5 million will require the authorization of CBK.

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Story By Kepha Muiruri
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