Banks across the country will readjust their systems and reconfigure the more than 1,700 Automated Teller Machines (ATM) across the country in the wake of the introduction of the new generation notes in the economy.
The Central Bank of Kenya (CBK) is firming up plans to phase out the old generation notes, a move interpreted as a method of killing off illicit flows of cash.
In a dispatch uploaded on its social media pages on Tuesday, the Kenya Bankers Association (KBA) welcomed CBK’s latest move saying it will ensure stability and integrity of the country’s financial system.
“Banks have anticipated this transition and have in place the mechanisms to receive the old notes and provide their customers with the new currency,” reads KBA’s dispatch “The process will include reconfiguration of ATM machines and currency counters in Meru, Nyeri and Nakuru which are operated by the CBK in collaboration with the KBA,”
“There are approximately 780 branches and 66,000 agents countrywide. We anticipate that banks will have a structured replacement program that will ensure minimal disruption of regular services,”
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Kenya Bankers Association statement on new generation bank notes #KBA pic.twitter.com/EmQRI7yVsW
— Kenya Bankers Association (KBA) (@KenyaBankers) June 4, 2019
KBA also called on Kenyans to swap their old generation notes for the new currency early enough before the October 1 deadline set by CBK lapses.
Wary that illicit cash dealers might be tempted to use the grace period to launder their dirty money through banks, KBA says that lenders will be extra vigilant warning that Kenyans who will make deposits worth Ksh1 million or more will be required to cooperate with stringent banking regulations.
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CBK Governor Patrick Njoroge has stated that individuals without bank accounts holding on to more than Ksh5 million will be required to visit CBK offices and explain the source of the cash before their old generation notes are replaced with the new currency.
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