The deadline to exchange old 1,000 notes for new generation notes is five days away. As people rush to convert the old paper money, the Central Bank Governor Dr. Patrick Njoroge has revealed that Banks are strictly observing the Anti-money laundering and Counterterrorist financing rules to prevent illicit funds from entering the formal financial system.
Speaking during a media briefing, Dr. Njoroge lauded Ugandan and Tanzanian financial authorities for their support during the demonetization process. The two neighbors worked with Kenya’s Central Bank in ensuring no illegal funds entered into circulation. The governor also added that Uganda and Tanzania have finished their conversions and repatriated their holdings of the old KSh 1000 notes.
The governor disclosed that as at the end of August, conversions above KSh2 million amounted to 24 transactions. According to the CBK boss, the average value of these transactions was KSh3.1 million. Nonetheless, the governor said that most of the conversions had comprised small amounts.
In the past three months, the financial regulator has engaged in extensive public awareness campaigns aimed at informing people about the pending demonetization of the old 1,000 notes. The awareness crusades have involved social media campaigns, posters sent to all public primary schools in Kenya, and information sent to commercial banks and money agents throughout the country.
Additionally, CBK officials have reached out to prison officers and judicial officers to ensure old notes in prisons and court exhibits are converted into the new generation notes before the Monday deadline.
Contrary to the expectation that most Kenyans will exchange the old notes close to the deadline, Dr. Njoroge revealed that 53% of the conversions already happened in June, shortly after the announcement on the demonetization on 1st June 2019.
