Traders who imprort merchandise from Kenya have been warned to have used all the Kshs 1000 old notes because the Central Bank of Kenya is set to make the notes obsolete at the end of the month.
Announcements have been put on Kenyan TVs and radios to that effect but many Ugandans may not be aware and still have the old notes. It has also been a habit for Ugandans to act last minute for many of the deadlines for changes in various categories ending up stampeding the service providers.
However other notes have not been affected and will operate alongside the new ones.
The exchange will not affect the general public alone but also other institutions holding this money like courts as exhibits. As a result the Director of Public Prosecution in Nairobi has directed police and Ethics and Anti-Corruption Commission to photocopy the old 1000 notes held by the Directorate of Criminal investigations in pending investigations.
The govenor Central Bank of Kenya Patrick Njoroge directed that those in possession of the old KSh 1000 notes have until October 1, 2019 to exchange them with new generation notes.
Other old notes will operate alongside the new notes
Phasing out of large old notes is aimed at curbing illicit financial flows across the country and in other nations across the region. “To deal with these concerns conclusively, all the older one thousand shillings will be withdrawn. All persons have until October 1, 2019, to exchange those notes, after which the older one thousand shillings notes will cease to be legal tenders,” he said.
Ugandan traders who do business with Kenya use the Kenyan Shilling without the need to exchanging it into dollars and as a result have the Kenyan money in Uganda.
A quick survey in the Forex Bureaus in Mbarara have revealed that many people have been selling their old notes at a lower rate than the new notes as they go for business to Nairobi. One dealer said they are selling old notes to those that are willing to buy at UShs 33 for Kshs 1 while the new ones go for Ushs 36 for KShs 1