Patrick Njoroge: Demonetisation - a step in the fight against corruption

Article by Dr Patrick Njoroge, Governor of the Central Bank of Kenya, published on the website of the Central Bank of Kenya, 24 October 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

On September 30, 2019, the withdrawal of the old series Ksh.1,000 notes was successfully concluded. This demonetisation commenced on June 1, 2019, following the launch of Kenya's new generation notes. The new notes symbolize green energy, agriculture, social services, tourism and governance, that are the drivers of a Newly Reborn and Prosperous Kenya.

In deciding to withdraw the older series Ksh.1,000 notes, the Central Bank of Kenya (CBK) assessed the grave concern that these notes were being used for illicit transactions and financial flows, in Kenya and in the region. More recently, there has also been the emergence of counterfeits. Both these concerns posed a threat to the credibility of Kenyan currency, and required swift action.