New Kenyan Currency and the Outcry from Public Opinion
New Kenyan Currency left many tongues waging especially after being launched by President Uhuru Kenyatta. Moreover, the launch of the New Kenya Currency utterly comes in line with the preservation of the country’s pride and heritage.
Notably, the video below shows you how the Kenyan Currency has evolved with time. Whereby, as per the time of this article redistribution, the New Kenyan Currency bears the following substitutes. Such as KES;
- 1 coin = Bears the image of a Giraffe
- 5 coin = Bears the image of a Rhino
- 10 coin = Bears the image of a Lion
- 20 coin = Bears the image of an Elephant
- And more!
Who is regulating the New Kenyan Currency?
To enumerate, the Central Bank of Kenya (CBK)is the monetary authority of Kenya. Whereas, the Bank’s Head Office is located in Nairobi.
Notably, in 1966, the Central Bank of Kenya formation was successful. Particularly after the dissolution of East African Currency Board (EACB). Likewise, Dr. Patrick Ngugi Njoroge is the current Governor of CBK and Ms. Sheila M’Mbijjewe the Deputy Governor. (2019)
In addition, the Board of Directors CBK provides oversight of the Bank’s functions. Especially by formulating policies, other than the formulation of monetary policy, and reviewing performance. Not to mention, the CBK Board comprises eleven members. Consisting of the;
- PS to the National Treasury
- and eight non-executive directors appointed by the President.
Above all, the Central Bank of Kenya has an adept team with skills that include;
- communications specialist,
- information technology experts,
- and human resources professionals amongst others.
As a matter of fact, this pool of talented staff ensures effective and efficient implementation of the Bank’s mandate. Learn more about the Central Bank of Kenya duties and responsibilities.
Central Bank of Kenya New Kenyan Currency directives
According to the Central Bank of Kenya (CBK), Kenyans have until October 31 to discard the current change one thousand shilling notes. Following the launch of the new generation bank notes by President Uhuru Kenyatta during the 56th Madaraka Day celebrations in Narok on June 1, 2019.
Apart from the new Kenyan Currency coins, the new Kenyan Currency notes will be in various denominations too.
President Uhuru Kenyatta Policies
Chiefly, the launch followed two policy directions by President Uhuru Kenyatta. Particularly on government payments and the clearance of all imported goods. By all means, including all government suppliers payment before the phase-out.
“All accounting officers in the national government should ensure that all pending bills that do not have audit queries are paid promptly and on a priority basis before the end of this year. The county governments should also follow suit,” President Uhuru Kenyatta said.
Be that as it may, the Central Bank of Kenya Governor announced the unveiling of the New Generation Banknotes.
The CBK general Old & New Kenyan Currency Services
By law, the Central Bank of Kenya is the only institution in the country that can issue currency. To successfully accomplish this mandate, the Central Bank ensures that it procures adequate and secure currency for distribution to meet the country’s needs.
Notes and Coins overview
The Central Bank of Kenya is the only institution in Kenya with full discretion and sole rights to issue currency notes and coins. Not forgetting, mandated and derived from the Kenyan Laws under the CBKs Act, Section 4 A (1) f. This mandate involves the following responsibilities. Including,
- Planning, forecasting, procuring and distributing currency notes and coins.
- Setting up suitable currency distribution mechanisms.
- Safeguarding the integrity of Kenyan currency as a medium of exchange.
- Developing policies for proper handling.
Bank’s Role in Currency Management
The Bank supplies banknotes and coins to the Kenyan economic system in bulk while also destroying banknotes and coins that can no longer be used.
Notes and coins identified for destruction are selected from what the commercial banks have deposited to the Bank. The Bank also manages the design of its currency and follows through the printing (for banknotes) and minting (for coins) process from the time orders are placed.
It is the Bank’s objective to have only good quality currency circulation and this is achieved by setting quality standards for currency in circulation.
The current standards were issued on July 14, 2008, under the Amended Banking Circular Number 4 of 2008. These standards predominantly guide commercial banks and other bulk cash handling bodies on how to sort currency.
Currency Design & Counterfeit Deterrence
The Bank designs its currencies with stakeholder engagements forming a critical part of the process. On finalization of the designs, the Bank procures its currencies in compliance with the Public Procurement Act.
Currency in Circulation
The Central Bank of Kenya began printing Kenyan banknotes in 1966 under the mandate given in the Central Bank of Kenya Act cap 491.
Whereby, the initial issue of Kenya shilling notes was in the denominations of 5, 10, 20, 50 and 100 shillings, all bearing the portrait of the First President of Kenya, H.E. Mzee Jomo Kenyatta on the front, and diverse scenes of economic activities in Kenya on the back.
In 1979, new notes and coins with new security features were issued. Ushering in a new era.
The current generation of Kenyan banknotes ranges in the denominations 50, 100, 200, 500 and 1,000 shillings.
In the currency design process, Kenya’s currency adopts internationally recognized security features that make it difficult to counterfeit. These features also make it easier for the general public to identify counterfeit currency.
Commercial banks regularly make deposits of banknotes and coins to their accounts in the Central Bank, where they are processed and sorted.
The Central Bank maintains specialized machines that are used to process banknotes and coins, and those that are fit for circulation are set aside for re-distribution.
In its role of issuing currency, the Central Bank must also ensure that currency is distributed throughout the country. To accomplish this, the Central Bank has;
- Branches in Mombasa, Kisumu, and Eldoret
- and Currency Centres in Nyeri, Nakuru, and Meru.
These Branches and Currency Centres form a key focal point for currency distribution to the local financial institutions.
A currency is considered damaged or unfit if mutilated, torn or inked. It is typically removed from circulation when it is brought into the Central Bank, through deposits from commercial banks, and sorted out from fit-currency.
However, members of the general public who find damaged currency can also take them to the CBK offices or Commercial Banks. To have them replaced, but under the following conditions;
- They have not been deliberately mutilated
- The currency must be genuine
- The currency must be more than half and continuous
- The banknote should bear at least one complete serial number
Damaged Notes and Coins
The Central Bank exchanges mutilated currency for members of the public. Mutilated currency notes take various forms, e.g. burnt notes, damage of currency by chemicals, etc. The currency should meet the following requirements. Such as;
- Not deliberately mutilated
- Currency must be genuine
- More than half and continuous
- Bear at least one complete serial number
In case of coins, the inner part of coin for coins with outer bordering rings i.e. 10/=, 20/= and 40/=.
Finally, learn more about Commemorative Currency and Laws Related to the Old and New Kenyan Currency. Additionally, you’ll find the following links more related and useful.
- The jmexclusives Online Team: Most Recent Blog Articles and News Update
- Central Bank of Kenya: Launch of the New Generation Banknotes
- Daily Nation: CBK unveils new generation currency notes