Demonetisation in Kenya:The Central Bank of Kenya has declared that the demonetisation process that concluded on September 30, this year was a success. The CBK has also revealed that Kenyans returned the old Sh. 1,000 notes worth Sh. 209.6 billion out of the Sh. 217 billion in circulation as at June 1.
This means that about Sh. 7.38 billion of the banned currency did not return to the banking system by close of the deadline.
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“The demonetisation process progressed very well. We did well and we are happy with the outcome,” CBK Governor Patrick Njoroge said on Wednesday. “The anti-money laundering measures we put in place were a success. Whoever is holding this (unreturned money) is poorer.”
Mr. Njoroge also announced that the returned money will be shredded and turned into briquettes. He also revealed that 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.
In recalling the 217 million pieces of the old Sh. 1,000 notes in a massive and expensive process that cost the taxpayer over Sh. 15 billion, the CBK had also taken the war to the doors of counterfeiters.