CBK Pushes for Clean-Note Policy to Phase Out Old Notes

  • Central Bank of Kenya (CBK) Governor Patrick Njoroge on Tuesday addressed the shortage of Ksh50 notes in the economy assuring that they had released new notes for circulation.

    Dr Njoroge's announcement came amid public outcry over a shortage of the notes adding that the CBK would adopt measures to phase out old and worn out notes.

    "We have released new 50-shilling notes and we expect that they will circulate to the citizens. Also, we are pushing a clean-note policy, and we aim to withdraw from circulation notes beyond a certain level of usage," he stated during a presser on Tuesday.

    [caption caption="An old Ksh50 note"][/caption]

    The CBK boss addressed a law proposed by the National Treasury aimed at regulating the financial sector, terming it an attack on the institution.

    "It says digital lenders will be licensed by a new Financial Markets Conduct Authority and bound by any interest rate caps the Authority sets.

    "The bill will emasculate the Central Bank, and fails to address a cap on commercial lending rates," he stated.

    He further raised concern over reports alleging that various financial institutions had been involved in the scandal.

    He affirmed that he indeed was tasked to oversee that all banks have complied with the various stipulated regulations when handling huge sums of money. 

    "As has been reported, I am responsible to oversee the compliance of various regulations of anti-laundering money acts and various other guidelines. It is our responsibility and mandate to ensure the guidelines are implemented.

    "All those involved in the scandals will be held accountable, we have no doubt in mind on that," Mr Njoroge exclaimed.

    [caption caption="Central Bank of Kenya (CBK) Governor Patrick Njoroge"][/caption]

    A clean-note policy is aimed at providing good quality currency notes and coins to the citizens while avoiding the circulation of spoiled notes in the economy.

    In the system, the Central Bank instructs all the banks to circulate good quality notes to the public wile withholding spoiled notes which they have received from people.