• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Banks to update ATMs for new currency

Kenyan Business Feed by Kenyan Business Feed
Banks to update ATMs for new currency
Share on FacebookShare on Twitter

Table of Contents

Toggle
        • News
  • Banks to update ATMs for new currency
News

Banks to update ATMs for new currency

Wednesday, June 5, 2019 13:02


By EDWIN OKOTH

CBK on Monday unveiled the rules that will
CBK on Monday unveiled the rules that will guide the replacement of the Sh1,000 notes, which accounts for 83 percent of the Sh540 billion. FILE PHOTO | NMG 

Banks will now have to reconfigure their automated teller machines (ATMs), acquire new cash counting machines and upgrade their software to accommodate the new currencies introduced to the market last Saturday.

The new currencies are smaller and have different features, prompting the need for ATM upgrades and new money counting machines found in teller booths to verify cash amounts and capture counterfeits.

The Kenya Bankers Association (KBA) Tuesday said banks were working with the industry regulator, the Central Bank of Kenya (CBK) to ensure the adjustments are done quickly for a smooth transition.

The older versions of smaller denominations will remain in circulation alongside the new ones launched on Madaraka Day, but after October 1, the older Sh1,000 notes will become invalid.

“There is the retuning of the cassettes where notes are held in the ATMs and then there is the software upgrades, especially for more sophisticated machines like the ones that take deposits,” KBA chairman Habil Olaka said yesterday.

“The degree of work each type of machine will require will vary the cost implications, but we are committed to make sure there is minimal disruption of regular services.”

The lenders have over the years concentrated in upgrading the alternative banking channels like ATMs to reduce the flow of people to bank branches in a drive to contain costs.

The recent upgrades include deposit taking ATMs and denomination-sensing money machines, including those that can detect fake currency.

KBA says Kenya has about 1,700 ATMs, but according to CBK, the country had 2,858 machines in 2017, up from 1,971 in 2011.

The drive for alternative channels like smart ATMs gained impetus in 2016 when MPs capped interest rates at four percentage points above the central bank’s benchmark, which currently stands at nine percent. Lawmakers said they were concerned about high interest levels.

But that has led to a private credit squeeze, as banks say the cap forced them to cut back on loans to high-risk groups. In turn, this prompted them to cut costs and go for lean operations.

The CBK redesigned the 1, 5, 10 and 20 shilling coins in December 2018 and has begun releasing the new 50, 100, 200, 500, and 1,000 shilling notes in the second phase of the transition to the new currency.

The introduction of the new currency notes is meant to tackle illicit financial flows, cash counterfeiting and also to arrest tax cheats.

CBK on Monday unveiled the rules that will guide the replacement of the Sh1,000 notes, which accounts for 83 percent of the Sh540 billion in circulation.

The Sh500 notes account for 5.9 percent, Sh200 (4.2 percent), Sh100 (4.8 per cent) and Sh50 (1.9 percent).

Given Kenya’s status as the most advanced economy in the region, the central bank will co-ordinate the move to scrap the banknotes with its counterparts in the region, where the Kenyan currency is widely accepted and used for payments.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

SportPesa mega profits exposed through court battles

SportPesa mega profits exposed through court battles

May 19, 2022

Oparanya takes over running of Mumias Sugar Company

May 18, 2019

Subscribe.

Trending.

Co-op Bank Branches in Nairobi and Their Contacts

March 3, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025

Tourism Ministry Leads Push to Improve Passenger Experience at JKIA with New Service Charter

April 1, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF