Police in Nairobi are investigating an incident in which Nairobi-based businessman was robbed of Sh 15 Million while trying to help a politician change the old Sh 1000 banknotes ahead of the 30 September deadline.

Reports indicate that the victim who operates a forex bureau in Eastleigh was approached by a broker known to him on Saturday with the broker informing him that him that a politician had Sh15 million in the old currency and wanted it changed to US dollars at “a good rate”.

Seeing an opportunity, he packed crisp dollar notes totaling to 150,000 US dollars and boarded the car that the broker came in.

CBK Governor Patrick Njoroge presents the new generation notes to President Uhuru Kenyatta on 01 June 2019  during the Madaraka Day celebrations in Narok
CBK Governor Patrick Njoroge presents the new generation notes to President Uhuru Kenyatta on 01 June 2019 during the Madaraka Day celebrations in Narok

All went well until the duo reached Upperhill area when the broker turned on the businessman, threatening him before making away with the cash that was intended for the exchange deal.

Nairobi Police boss Philip Ndolo confirmed that police are investigating the Saturday night incident that was reported at Capitol Hill Police Station. 

Genius move

The new Sh 1000 bank note was launched on 01 June 2019 in a move aimed at taming rampant corruption with much of the proceeds stashed in wardrobes.

Experts opined that the move marked the end of the road for corrupt cartels and criminal enterprises who have stashed millions of cash in their homes.

The move will disrupt illicit financial flows that have previously been exploited by Tax evaders, corrupt politicians, terrorist financiers and fraudulent businesspeople.

Stringent regulations made banks a no-go zone for criminal enterprises, money launderers and merchants of corruption, forcing them to keep the money in their homes or offices.

Photos of Sh18 million, that were recovered during a raid on the homes and offices of top National Lands Commission bosses
Photos of Sh18 million, that were recovered during a raid on the homes and offices of top National Lands Commission bosses

Recent raids by detectives have unearthed hundreds of millions of shillings whose source cannot be explained stashed in wardrobes, leaving many wondering why the owners opt to keep the cash home rather than in a bank where it is safer.

Case in point is late last year when DCI detectives reportedly found more than Sh700 million in the house of a personal assistant of a senior Jubilee party official during a secret raid though the matter never made it to court.

The new directive leaves them with no option but to get the millions back into the mainstream and legit financial system or end up stuck with billions of hidden shillings that will become valueless in just months.

Stringent regulations

Banking regulations require those making deposits of more than 1 million to account for the funds.

Analyst opine that a spending spree is set to commence in a bid to beat the deadline as money that would have otherwise remained idle in closets inside people’s homes will find its way into the mainstream financial system through bank deposits and investments leading to economic growth.

The old Ksh 1000 currency will cease to be a legal tender on 30 Sep 2019 with the country transitioning to the newly-launched note.

The Central Bank of Kenya (CBK) has been urging Kenyans to exchange their money ahead of the deadline, maintaining that there will be no extension.

“Old Ksh 1000 notes will be worthless after Sept 30. Exchange them now!” Read a reminder from CBK.