CBK says Sh1000 notes worth Sh7.38 billion was not returned

Kenyans returned the old Sh1,000 notes worth Sh209.6 billion out of the Sh217 billion in circulation as at June 1 when the new look currency was announced by government, CBK governor Patrick Njoroge announced Wednesday.

This means about Sh7.38 billion of the banned currency did not return to the banking system by close of the deadline, Dr Njoroge said at a press briefing. Dr Njoroge termed the process a success.

“The demonetisation process progressed very well,” said Dr Njoroge at a briefing.

“We did well and we are happy with the outcome.”

The returned money will be shredded and turned into briquettes, said the governor.

The stringent rules could have discouraged those with illicit money from exchanging the old notes in banks but Dr Njoroge maintained the exercise was a success.

“The anti-money laundering measures we put in place were a success,” said the governor.

“Whoever is holding this (unreturned money) is poorer.”

The government in June issued an order for withdrawal of the older version of Sh1,000 notes by October 1 following the introduction of new notes to tackle illicit financial flows and counterfeiting.

As of September 30, about 149.6 million pieces of the new generation Sh1,000 notes had been released into the banking system, Dr Njoroge said.