The Central Bank of Kenya (CBK) Governor Patrick Njoroge says phasing out of the Kshs. 1,000 note on October 1 will not be rescinded and instead Kenyans should make effort to comply with the notice.
“It is for the good of the economy that all comply,” Dr Njoroge said.
Njoroge who was speaking to a local broadcaster said that CBK has sensed attempts of fraud as those who have been hoarding the note try to offload the money in the market.
The hoarders are said to be launching unregulated money lendingbusinesses as well as attempting to buy properties in cash.
He warned that bulk and suspect banking as well as transactions will be monitored to cushion the economy against inflation and money laundering.
The CBK has disbursed enough new generation notes and so far, 95 percent of automated teller machines have been modified to dispense the Kshs. 1,000 note, he said.
A few weeks ago, banks complained of the shortage of the new notes to which CBK responded by printing more.
The CBK will ensure “controlled injection of the new notes into the market.”