Why is Kenya Replacing its Banknotes?

Kenya’s President Uhuru Kenyatta has announced that the country’s currency is to be replaced with a new generation of banknotes. Kenyans must return their 1000 shilling ($10) notes to banks by 1 October, in a bid to fight money laundering, counterfeits and corruption. New banknotes are to be brought in over the coming months with other denominations being phased out gradually. The governor of Kenya’s central bank, Patrick Njoroge, also expressed “grave concern” over larger banknotes being used for “illicit financial flows in Kenya and also other countries in the region”. The note is the highest value note in Kenya and according to Mr Njoroge, the Kenyan shilling is the equivalent to the US dollar in east Africa, in terms of its recognition.SOURCE: BBC

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