Banks In Uganda To Stop Accepting Kenyan Notes With Immediate Effect

Banks In Uganda
Samples of the new generation currency notes unveiled by the Central Bank of Kenya on June 1, 2019. PHOTO | COURTESY

Banks in Uganda will no longer accept the old notes from Kenya with immediate effect. The Central bank in Uganda said that they were requested by the Central bank in kenya not to accept the notes in order to enhance the fight against illegally acquired money.

Acting Executive Director Operations Charles Malinga Akolalso said that the new notes are only available in banks in Kenya.

“The Central Bank of Kenya has informed Bank of Uganda that they have issued a new series of Kenya banknotes effective May 31, 2019…in light of new developments, BOU will not accept Kenya shillings at its counters with immediate effect,” the notice reads.

This notice comes just days after the Tanzanian government has suspended exchange of its currency with that of Kenya, as well as inflow of Kenyan currency to the country.

This follows the issuance of new bank notes by the Kenyan government meant to curb graft in the country and illicit cash flows.

In a special notice to banks, the Bank of Tanzania said that it has frozen Central Bank of Kenya’s (CBK) cash collection account with immediate effect.

“Given the gravity of illicit flows concerns raised by CBK, you are required to subject all flows from and into Republic of Kenya to enhanced due diligence,” read the notice in part.

Read: CBK Governor Njoroge Launches New Bank Notes As He Announces Abolishment of Old Ksh1,000 Notes

“The Bank of Tanzania has been informed by the Central Bank of Kenya (CBK) of the issuance of the new series of bank notes effective 31st May 2019, with a view to combat illicit financial flows and counterfeits in the Republic of Kenya. Consequently, CBK has suspended currency conversions and repatriations of all Kenyan currency to restrict illicit flows into the Republic of Kenya, and will not accept Kenyan currency with immediate effect,” read the notice dated June 7.

The UK through British High Commissioner to Kenya Nic Hailey have vowed to be vigilante to ensure that any attempts to change old notes, acquired through money laundering and corruption, with their Sterling pounds are thwarted.

Hailey said that the y are work closely with Kenyan authorities to make sure that foreign exchange bureau are not used to change the illegal monies into pounds.

“We know there might be some cases of stolen money being contributed in fundraisers. You have seen people producing big bundles of cash. It may or may not be stolen but we have to be careful,” he said.

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Written by Merxcine Cush

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