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Ridiculous ways Kenyans are using to get rid of old Sh1,000 note before deadline

Authors:

Miriam Mwende

Last-minute Kenyans or illegal cash?

File Image of a bundle of old Ksh1,000 notes. Kenyan pays for luxury Sh7 million Mercedes with old Sh1,000 note trying to beat deadline

Reports have emerged on various cunning ways Kenyans are employing ahead of the September 30, 2019 deadline on the Sh1,000 note.

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A car dealer in one of Nairobi's upmarket areas told reporters that he encountered one cunning Kenya earlier in the week who seemed pressed to dispose the old Sh1,000 notes.

The dealer only identified as John stated that the customer paid for a luxury Mercedes Benz car worth Sh7.4 million with the old notes.

A woman handling old Ksh1,000 notes. Kenyan pays for luxury Sh7 million Mercedes with old Sh1,000 note trying to beat deadline
A woman handling old Ksh1,000 notes. Kenyan pays for luxury Sh7 million Mercedes with old Sh1,000 note trying to beat deadline ece-auto-gen

"People want to get rid of their old notes, but they know very well that questions will be asked if they go put the money themselves in the bank. When I go to the bank to deposit money from a car sale, people ask for the papers from the sale, sometimes even copies of emails, but it never goes further," John explained.

Liquor stores and loans

Another, a liquor store proprietor, narrated how he was approached by a friend with a deal that sees him get Sh500,000 of the old notes daily.

"I was approached by a friend through another friend and we struck a deal. I get around Sh500,000 every day to bank together with my daily sales. In return I get between five and 10 percent, depending on the amount," he told reporters.

In other parts of the country, Individuals are granting interest-free loans of up to Sh50,000 which are given in cash and repaid in the new notes as a way of beating the deadline.

CBK Governor Patrick Njoroge has clarified that there will not be any extension to the September 30 deadline when the old notes will cease to be legal tender.

Central Bank of Kenya Governor Dr Patrick Njoroge
Central Bank of Kenya Governor Dr Patrick Njoroge Pulse Live Kenya

Authors:

Miriam Mwende

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