Finally, the last day for exchanging the old Ksh1000 bank notes is here.
Central Bank of Kenya (CBK) and banks stepped up efforts towards the demonetization efforts and that has paid off according to some sources.
However, CBK last week said that over Ksh.100 billion was still not returned.
The banking regulator repeatedly warned Kenyans that the deadline would not be extended and that the old notes will become worthless paper as from October 1, 2019.
‘Remember, the deadline for exchanging the older KSh. 1000 notes is SEPTEMBER 30, 2019. If you’re still holding the older KSh 1000 notes on October 1 and afterwards, you’ll be holding worthless paper. Exchanging your notes is pretty simple’, CBK wrote on its Twitter page.
Since the demonetization effort was to curb illicit financial flows and counterfeiting, CBK had put an order out to banks to notify it in case one was depositing over Ksh5 million.
Persons without bank accounts exchanging currency notes for amounts exceeding Sh1 million will require an endorsement from CBK, same to the person exchanging currency notes for amounts exceeding Sh 5 million.
Over the months there were suspicious bank deposits and CBK now has over 900 accounts under investigations as of today.
“We have shared the information we have gathered so far with the DCI for further investigations. Our role as the regulator is to work the investigating agencies to ensure that we achieve our goal,” Dr Njoroge
A few days ago, the regulator raised suspicion on how old Ksh.1000 notes were being used to purchase wheat and other agricultural products in cash in Narok town.
“Currently we have a problem in Narok. In Narok they are harvesting the wheat. And so we’ve seen an influx of purchasers who are purchasing wheat (in) cash,” Patrick Njoroge, the central bank governor told a media briefing.
Many organizations had stopped taking in old Ksh1000 notes from as early as September 26.
In short, messages to customers, Safaricom and Pizza Inn warned their clients that as from Thursday last week they would not accept the old Ksh1000 note. The companies joined the US Embassy in Nairobi, which issued a similar statement with different deadlines a week earlier.
It remains to be seen how much CBK will have netted after the deadline expires at midnight today.
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