Kenyans living in Uganda will now have to return home and exchange Sh1,000 notes before the deadline, Bank of Uganda has said.

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In a statement, the Ugandan Central Bank asked those intending to use the currency to immediately have it exchanged in Kenya, a move that would have several people returning home.

According to the bank, the directive is in line with implementation of the communication by Central Bank of Kenya which announced elimination of the notes from circulation.

“In light of the new development, the Bank of Uganda (BoU) will not accept Kenya shillings at its counters with immediate effect,” a letter to commercial banks in the country reads.

Already, Tanzania has also stopped using of Sh1,000 notes from Kenya, with a similar directive issued by the Bank of Tanzania last Friday in Dar es salaam.

Central Bank of Kenya Governor Patrick Njoroge announced that Sh1,000 notes will cease bring legal tenders from October 1st this year.

Also, he said people with over Sh5 million will be required to visit Central Bank to facilitate exchange. Those with less than Sh1 million will be allowed to exchange in local banks.

"People who want to exchange amounts above Sh5 million will need to contact the CBK. We have, however, analysed these and found that these are very few," CBK posted on their official Twitter account on Monday last week.