October 3, 2022
Ksh. 7.4 Billion gone into waste after closure of 1000 note exchange deadline

Central Bank of Kenya Governor Dr. Patrick Njoroge has declared 7,386,000 pieces of old Sh1,000 notes worth Ksh7.4b worthless.
This follows the lapse of the 30th September demonization deadline in which the Governor ordered Kenyans to return the old Ksh1000 notes to banks.

Dr. Njoroge made the revelations at a press conference to update on the process of withdrawal of the older KSh 1,000 note from circulation.

“There were 217,047,000 pieces of KSh 1,000 as of June 1 – 209,661,000 pieces of KSh 1,000 were received by the end of September 30,” he said.

He explained that the value of money that did not come back is equivalent to the value lost during the Goldenberg case.

Dr Njoroge holding compressed brick made of shredded old Ksh1000 notes equivalent to KSh 1 million [Photo, Courtesy]
In the number of transactions, Dr. Njoroge revealed that 96% of transactions were under 500,000, 99% of transactions were under KSh 1,000,000.
During the period, the CBK stated that 3,172 suspicious transactions were flagged for suspicious transactions.

Dr Njoroge disclosed that there will be a continuation of investigations and maintenance of the current poise. The exercise also gave a good start to other agencies.
Central Bank of Kenya Governor Dr. Patrick Njoroge has declared 7,386,000 pieces of old Sh1,000 notes worth Ksh7.4b worthless.
This follows the lapse of the 30th September demonization deadline in which the Governor ordered Kenyans to return the old Ksh1000 notes to banks.

Dr. Njoroge made the revelations at a press conference to update on the process of withdrawal of the older KSh 1,000 note from circulation.

“There were 217,047,000 pieces of KSh 1,000 as of June 1 – 209,661,000 pieces of KSh 1,000 were received by the end of September 30,” he said.

He explained that the value of money that did not come back is equivalent to the value lost during the Goldenberg case.

Dr Njoroge holding compressed brick made of shredded old Ksh1000 notes equivalent to KSh 1 million [Photo, Courtesy]
In the number of transactions, Dr. Njoroge revealed that 96% of transactions were under 500,000, 99% of transactions were under KSh 1,000,000.
During the period, the CBK stated that 3,172 suspicious transactions were flagged for suspicious transactions.

Dr Njoroge disclosed that there will be a continuation of investigations and maintenance of the current poise. The exercise also gave a good start to other agencies.

“The citizens of our country demand and deserve a fresh start, and the demonetisation process is a beginning”

He said CBK had to strike a balance to give ‘Wanjiku’ time while also ensuring that the aims of demonetisation were accomplished.

“In designing the demonetisation strategy, we looked at the experience of other countries and learned from them. We wanted to minimise the disruption to the economy while enhancing effectiveness” he said.

He lauded the process as successful noting that CBK implemented a robust anti-money laundering framework as we conducted the demonetisation exercise.

The exercise was to deal with illicit financial flows and to deal with counterfeits.
“The citizens of our country demand and deserve a fresh start, and the demonetisation process is a beginning”

He said CBK had to strike a balance to give ‘Wanjiku’ time while also ensuring that the aims of demonetisation were accomplished.

“In designing the demonetisation strategy, we looked at the experience of other countries and learned from them. We wanted to minimise the disruption to the economy while enhancing effectiveness” he said.

He lauded the process as successful noting that CBK implemented a robust anti-money laundering framework as we conducted the demonetisation exercise.

The exercise was to deal with illicit financial flows and to deal with counterfeits.

Source: kenyagist.COM

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