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Kenyans fail to return $70m in old notes as Central Bank deadline lapses

Times of Somalia
Thursday October 3, 2019


Seventy million dollars in 1000-shilling notes failed to way to the Central Bank in Kenya following deadline to return the old notes.

Central Bank of Kenya governor Dr. Patrick Njoroge said out of the $2.17 million worth of the old Sh1,000 notes in circulation as at June 1 when the withdrawal notice was issued, $2.096 million was returned.

The older notes were declared invalid after September 30th midnight following the introduction of new currency on June 1. The $70.3 million was equivalent to 3.5 percentage of the older notes in circulation before of the withdrawal notice.

Njoroge said the unreturned money were proceeds of money laundering and corruption but noted those who failed to returned now owned just pieces of paper.

“Whoever is holding this (unreturned money) is poorer. They are holding paper that they stole from somewhere. Their net wealth is diminished by the full amounts,” Dr Njoroge said.

The Kenyan government unveiled new currency notes June 1 and set a three months’ timeline for holders of the old 1,000 notes to return. The deadline lapsed September 30.