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CBK Explains Why New Bank Notes Are Wearing Out Fast

New Currency notes / Courtesy

The Central Bank of Kenya (CBK) has refuted claims that the new bank notes, that have been in circulation for two years, are of low quality.

Kenyans have been complaining that the notes, especially the low denominations of Ksh50 and Ksh100, have been wearing away fast.

However, CBK Governor Patrick Njoroge blamed Kenyans for mishandling the bills, saying they are superior than the previous notes.

“Its no question the new bank notes are technically superior to Kenya’s old notes,”  Njoroge told the the National Assembly Finance and National Planning Committee.

Read: CBK Reinstates Sending Fees For Mobile Money Transactions Below Sh1,000

The bank notes dominate the lower cadre markets and and the matatu industry, where they are overly used before being returned to CBK for replacement.

“If the notes are in poor state, we remove them from circulation and destroy them, exchanging the notes for new ones. However, it may take time before notes return to the CBK from circulation,” added Njoroge.

Njoroge said that the recovery rate of worn out notes has been relatively good, ranging between 10 and 15 percent.

“If you have a dirty note, you can actually present this to your bank and exchange it for new notes or deposit the dirty notes. You can also directly exchange your dirty notes at the CBK,” said Dr. Njoroge.

Njoroge further revealed that none of the Ksh50 notes issued between June and December 2019 is still in circulation today.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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