In June 2019, the Central Bank of Kenya (CBK) announced that it would be phasing out the current generation KES 1,000 note by 1st October 2019. On that date, it will cease to be legal tender. This is in an effort to curb illicit financial transactions, including money laundering; address the problem of counterfeit notes; and fight corruption. They also announced new generation notes alongside the new KES 1,000 note (KES 50, 100, 200 and 500), but these do not have a deadline for exchange.

According to the CBK, we currently have in circulation 217.6 million pieces of KES 1,000, 30.8 million pieces of KES 500, 54.8 million pieces of KES 200, 126.4 million pieces of KES 100, 100.5 million pieces of KES 50 and 9.9 million pieces of KES 20. We’re joined by Ken Gichinga, the Chief Economist at Mentoria Economics, to discuss the demonetization process as it is planned in Kenya.

Resources

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Image Credit: Nairobi Wire