The Central Bank of Kenya Governor Patrick Njoroge on Monday laid down regulations that Kenyans with huge amounts of money will have to meet to exchange their money for the new generation currency.
During a press conference, Mr Njoroge noted that the government will educate the public on how to go about the demonetization process.
He further noted that the civic education was a banking regulator’s priority because uncertainty about currency is dangerous for the economy.
Njoroge mentioned that citizens who want to exchange the old notes for a value less than Ksh1 million can do so at their bank branches.
He went ahead to note that any Kenyan without bank accounts can exchange at any branch of any bank, or even at the CBK. However, they will need to have an official identification.
Citizens who want to exchange amounts between Ksh1 million and Ksh5 million will need to go to their own banks.
Those who do not have bank accounts and want to exchange this amount will need to contact the CBK which will then endorse them and they can go to a designated bank branch.
Additionally, he added that people who would like to exchange amounts above Ksh5 million will need to contact the CBK.
“Know Your Customer’ guidelines will govern the trade of the old currency for the new ones which were unveiled during Madaraka Day celebrations with the governor together with President Uhuru Kenyatta.
According to the guidelines, suspicious transactions, deposits or withdrawals to be reported to the concerned authorities.
Govenor Njoroge asserted that there are 217.6 million pieces of Ksh1,000 notes in circulations currently.
The roll-out is already facing opposition, but Njoroge said he is ready to go to court to defend the new notes that were released on Madaraka day stating that due process was followed.
“I have been informed of a legal challenge that has just been filed. We are going to deal with those issues as a matter of priority,” Njoroge said.