The Bank of Uganda has suspended the exchange of Kenyan Shillings in all banks and financial institutions in the country. It follows a similar move by the Bank of Tanzania. The bank indicated in a letter to commercial banks that it will no longer accept Kenyan Shillings at its counters.
Charles Malinga, the bank’s Executive Director Operations urged lending institutions to step up their due diligence on financial flows in and out of Kenya.
The Central Bank of Kenya is determined to stop illicit financial transactions involving the Kenyan currency. The regulator has sought the help of neighbouring countries in the fight.
Kenyans travellingspotlight to Uganda have been substantially affected by the directive. Similarly, businesses operating between the two countries are likely to experience cash flow problems.
