3 Reasons Why Old Ksh50 Notes Are Plenty - Bankers Reveal

The Kenya Bankers Association (KBA) has outlined three reasons allegedly behind the old Ksh50 notes that are plenty in circulation. 

One of the possible reasons according to the bankers is that the Central Bank of Kenya (CBK) currency centres are located far from a majority of the banks.

The KBA Chief Executive Officer Habil Olaka notes that the inaccessibility of the currency centres which are mandated to exchange the old notes with new ones is a hindrance to the phasing out process.

[caption caption="KBA Chief Executive Officer Habil Olaka in a past event"][/caption]

Olaka points out the second possible reason is that the old Ksh50 notes rarely get into the banking halls making it hard for the banks to facilitate the exchange.

Lastly, the KBA boss noted that the notes are often handled roughly compared to other denominations of the Kenyan currency.

Being the lowest note value in the economy, citizens have a higher regard for higher denominations due to their greater purchasing power despite both having no intrinsic value.

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

The CBK boss further indicated that the bank 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."

[caption caption="Betty's Place Restaurant in Nyeri town"][/caption]

Although notes and coins remain the most popular and acceptable mode of payment, Kenyans are warming up to a cashless economy as digital currency is now largely acceptable in many Points of Sale.

Cryptocurrency is also carving out a niche in the economy with Betty's Place Restaurant in Nyeri town now accepting bitcoin as a mode of payment for their products and services.