Why did Patrick Njoroge of Central Bank of Kenya decide to phase out Ksh 1000 notes?
Patrick Ngugi Njoroge is a Kenyan economist and banker and the 9th Governor of the Central Bank of Kenya.
He just announced that all the older 1000 ksh series shall be withdrawn. All persons have until October 1 2019 to exchange these notes, after which the older ones will cease to be legal tender.
Along with Uhuru Kenyatta, they unveiled new generation currency notes of all denominations and will withdraw old Sh1000 notes by October 1 2019 from circulation by a Gazette notice dated May 31.
Let’s hope that Central Bank of Kenya Governor Patrick Njoroge does not make a mistake like what happened to Indian. When Prime Minister Narendra Modi suddenly banned most of India’s cash on Nov. 8, he warned that “difficulties” could persist for 50 days. The payoff, he said, would be less corruption and less tax evasion.
The 500 rupee ($7.50) and 1,000 rupee ($15) notes Modi declared to be “worthless pieces of paper” made up about 86% of all cash in circulation. Few countries are as dependent on cash as India.
The real question for Kenya is why did they decide to do this and why now?