Kenyans Relationship with Old Sh1,000 Notes Becomes Complicated

The period Kenyans were given by the Central Bank of Kenya to change the old Ksh1,000 notes is almost over. However, the old notes have already lost their value to some specific individuals and/or businesses.

Walking around the country, you will notice warnings printed by businesses stating the last day they will be receiving the old currency.

According to CBK, a huge chunk of the notes are still in circulation despite the deadline fast approaching. As a measure to prevent having the old notes once they lose value, businesses are rejecting them before the deadline.

Safaricom, Pizza Inn to stop old notes

Leading Kenyan telco Safaricom has already warned its customer that they will not be receiving any old Ksh 1,000 shilling note after Thursday 26th September. The telco said this in a message to all of its customers.

“Following the demonetisation of Sh1000 note, we advise that the last day to collect the old currency at Safaricom shops will be Thursday,” reads a notice from the telco’s regional operations noticeboard.

Pizza Inn has also warned customers against using the old notes for payment in any of its shops after 26th September.

“Dear customer, as per the directive, we will not be accepting the old Sh1000 note from September 26, kindly use lower denominations or other means of payment,” read a text message from Pizza Inn to its customers.

PSVs, for instance, have already started rejecting the old notes.

Business Today Reports

The US Embassy consular section in Nairobi was among the first to issue a notice to the public locking them out from transacting with the old Sh1000 notes effective September 12.

“The U.S. Embassy’s consular section will not accept old Sh 1,000 notes after September 12. This is due to the directive of the Central Bank of Kenya (CBK) that 1,000 shilling notes of the old design will no longer be legal tender on October 1, 2019.”

The old notes are supposed to be valid until 30th September but you probably will not be able to use them before the deadline.

Local Kenyan Businesses already Rejecting the Notes

Public Service Vehicles operators have also started rejecting the old notes. To the PSV owner, getting a Ksh1,000 note now is risky because using the money after September 30th will be impossible.

CBK ordered the return of the old notes during Madaraka Day celebrations on June 1st. CBK Governor Dr. Patrick Njoroge said the Sh1,000 notes were being used for illicit financial flows in the country and region.

According to Njoroge, half of the old 1,000 shilling notes were still in circulation on 5th September. At that time, Kenyans had returned 100 million old Ksh 1,000 notes.

CBK says persons exchanging currency notes for an amount not exceeding Sh1 million of the withdrawn currency notes will exchange at their commercial banks, CBK branches, and currency centers or any nearest commercial bank.

Persons without bank accounts exchanging currency notes for amounts exceeding Ksh1 million will require an endorsement from CBK, same to the person exchanging currency notes for amounts exceeding Sh 5 million.