The Central Bank of Kenya (CBK) on Saturday announced that the Sh1000 notes will no longer be usable beginning October 1, saying that the tender bill is being used for illicit financial flows.
Speaking during the Madaraka Day fete in Narok on Saturday, CBK Governor Patrick Njoroge said that all notes currently in circulation must be returned before the directed date.
The announcement comes a year after such a prediction was made by renowned banker Mohammed Wehliye, who termed it the only way to deal with the corrupt people stashing huge volumes of money in their homes.
He said that demonetization would be the next weapon against graft in the country, and would hit the corrupt with shock and awe once identified and implemented by the state.
"Withdraw the Sh1,000 note from circulation to target unaccounted for wealth. Replace the genuine ones with Sh500s over a 60 day period. Let’s see who will be swimming naked," he last year, according to the Standard.
He on Saturday welcomed Njoroge's announcement, saying that it will now be easy to spot the thieves through a collaboration between the CBK and banks.
He observed that the move is mostly aiming at the big thieves.
“It is targeting the big thieves. The billions or even ten of billions. Also, an exchange is a deposit. Banks will have to report to CBK and other authorities any exchanges above a certain threshold. Will deter those with lots of 1000s to go,” he said.