Dr Patrick Njoroge, the Central Bank of Kenya governor, has explained why the new Kenyan notes decline fast.
Njoroge stated the notes are declining at a high rate because of high circulation. However, when appearing before the Senate Committee on Finance Budget, Njoroge argued the new notes are of high quality compared to the older notes.
Moreover, he blamed Kenyans for their poor handling of money skills, saying most Kenyans don’t keep cash in their wallets.
“Because we treat the currency harshly, it wears off fast because of the handling. As a matter of fact, we know that people should put money in their handbags or wallets. Unfortunately, most of us don’t use wallets, we put the money in other places,” said Njoroge.
Dr Njoroge said the major factor in coming up with the new notes was using a wallet.
He further said there wasn’t a shortage of circulation, and money in the market was consistent with demand.
The new notes came into use in September 2019. President Uhuru Kenyatta launched the new notes in December 2018, saying it was per the new Constitution.
However, after releasing the new notes, CBK faced litigation. Activist Okiya Omtatah said the new notes had images of Kenya’s first president instead of symbols representing the country’s heritage.
Justice Anthony Mrima wrote an opposing order, while judges Asenath Ongeri and Kanyi Kimondo ruled the petition didn’t hold water.