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Why there is a low circulation of the new currency notes

Despite the fact that the Central Bank of Kenya (CBK) has released the new currency notes, only few of them are in circulation.

In fact, only a few people have come into contact with the new generation notes.

READ ALSO: How to identify fake new currency notes

New Ksh500 currency note. | Source: TV47 DIGITAL |

According to a teller from the NIC Bank who revealed the information on condition of anonymity, a number of conditions have contributed to the low circulation of the new notes.

One is that a special software to detect genuine new currencies has not been installed in the note counting machines. Therefore, commercial banks cannot pick the new currencies in bulk from the CBK.

CBK Governor Dr. Patrick Njoroge with the new notes.
| Source: CBK |

One of the authorized currency machine engineers in Kenya is Mediant International Limited, which has been contracted by NIC bank to install the new currency detection software on their ATMs and counting machines.

Another reason why there has been a low supply of the new notes is because the bank staff had not received training.

“We cannot pick the new currency notes in bulk when the staff has not been trained for example on how to detect fake notes. But now that we have been trained, you will start seeing more of the new notes,”the NIC bank source told TV47 Digital on phone.

The culture in a commercial bank also influences the amount of new currencies they have.

“Some branches receive a lot of money from customers. Since there is a limit to how much you can have in your bank, if you reach that limit, you cannot request for more money from CBK,” the inside source said.

Therefore, such banks have only been receiving the new notes from their customers.

However, since there is a high demand for the new notes, such banks will have to find a way to stock them in their banks.

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