Why it will be harder to change the ‘old’ Ksh.1000 notes to foreign currency – CBK

The government has vowed to tighten measures to ensure that illegally obtained monies is not sneaked into the formal financial system ahead of the October 1 deadline for all persons to surrender the old Ksh.1,000 currency notes.

In a press briefing on Monday, Central Bank of Kenya Governor Dr. Patrick Njoroge said he will be holding talks with managers of foreign exchange bureaus and money remittance providers to put in place controls to prevent illicit financial flows.

Dr. Njoroge further pointed out that he will be communicating with other Central Banks across the region for collaboration in the fight against financial crimes in Kenya.

“I have just spoken to the CEOs and CFOs of commercial banks and micro-finances… I will talk with foreign exchange bureaus and money remittance providers to make sure all this is dealt with,” said the CBK Governor.

“I will be communicating with our sister central banks to explain to them what we are doing and we need their cooperation. You do not need money going to other jurisdictions in order to return to this jurisdiction. It is their business to make sure that their jurisdiction is clean.”

Dr. Njoroge noted that the four-month period given for all persons to exchange the old generation one-thousand shillings notes is meant to ensure all citizens have the relevant information and enough time for the changeover.

The CBK boss said those who want to exchange the old notes for a value of less than Ksh.5 million can do so at their bank or bank branches but will need official identification.

However, exchanging amounts beyond Ksh.5 million will require approval from the Central Bank.

The new currency notes were unveiled during Madaraka Day Celebrations in Narok County with CBK announcing that the new generation currency banknotes will be released to all commercial banks and micro-finance banks.

For the Ksh.1000 currency note, CBK gave the public until October 1 to exchange the old notes in a move seen as a fight against corruption and wanton siphoning of public resources.

Top government officials, politicians and well-connected business operatives alleged to hold billions of shillings in cash will be forced to surrender the money in exchange for the new bank notes.