Given the unprecedented roll out of the new currency notes, Kenyans ended up thrown off balance, especially after the government gave a four-month ultimatum to have all Sh1,000 notes recalled.
The move, in its bid to comply with the constitution is also poised to expose corrupt fellows as well as those circulating fake currency.
According to the Central Bank of Kenya Governor Patrick Njoroge, the move is targeting illegal wealth held outside the formal economy, which fuels corruption and other illegal activity and had not been declared for tax purposes.
“We have assessed the grave concern that our large banknotes — particularly the older Sh1,000 series — are being used for illicit financial flows in Kenya and other countries in the region,” Mr Njoroge said during the unveiling of the new currency, over Madaraka Day celebrations in Narok.
Tackling corruption is however said to be the opposite of what the new currency will result to, especially given four months, before October, when all Sh1,000 notes are expected to be handed over to CBK.
Former Kitutu Masaba MP Timothy Bosire, who is also an economist, declared that “this is the moment of reckoning for the corrupt”, but warned of impending loophole set to make the process futile.
“In this period, the government must remain alive to the fact that the cartels may use existing loopholes to launder their ill-gotten money. They must close all the channels to ensure this money is not sneaked into the economy,” said Mr Bosire, who is also ODM’s Treasurer.
On the other hand, Kiambu MP Jude Njomo warned of the influx of property investments as means for thieves to get rid of stolen money.
“We are going to see a lot of people buying multi-billion shilling properties in cash just to try and clean the money,” he said.
The real estate sector would for instance provide a loophole for the billionaires to launder their money.
This is while Kenyans online have been passing warnings that they are now more likely to receive fake Sh1,000 in their daily transactions as fraudsters try to rid themselves of the currency before its too late.
“There will be excessive fake notes in the market as fraudsters seek ways to offload their fake currency,” reads the social media alert.
“From now till deadline it would be wise to avoid handling Sh1,ooo notes from the market and Mpesa… withdraw 800 or 900 bob from Mpesa to avoid being conned,” the alert reads.
Caution:
From today until 1st Oct be careful when handling Kshs. 1000 notes.
There will be excessive fake notes in the market as fraudsters seek ways to offload their fake currency.#Be keen and wise— Vinnie (@Vinniepla) June 3, 2019
#kaachonjo folks … I imagine a lot of fake currency will be circulating … I am not accepting any old notes or gold … #PesaLink and Mpesa (digital money) for me until further notice 🙋🏾 pic.twitter.com/GTI9rO5Eee
— Nuru Mugambi (@NuruMugambi) June 3, 2019
At the same time the timeline is said to allow room for thieves to get away with their crimes.
Hii pesa wataismuggle nje,wachange currency mahali ka Sudan alafu wairudishe Kenya as"private investors"
— Levi.X (@GucuGuchu) June 3, 2019
Call me pessimistic, but I don't believe that recalling the old 1k notes is fighting corruption and theft. This is Kenya. Hear me out: one day is a loooong time for a Kenyan. Sembuse 4 months! How dumb can you be to imagine that Kenyan thieves are that dumb!#NewCurrencyNotesKe pic.twitter.com/BKgRbO8Uq4
— Edward Amaya (@amayaniedu) June 3, 2019
India changed their old currency in denominations of 500 and 1000 Rupees in one day and with immediate effect. In their case, there was no room for escape for their thieves. In Kenya, we are giving them 4 months to strategize.
— Edward Amaya (@amayaniedu) June 3, 2019