CBK withdraw 1000 notes

[RV Pundit]

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Kudos - we need to encourage digital payments - and slowly remove cash. Digital payments are easy to track and monitor - prevent money laundering and corruption.

[vooke]

Not removing but replacing then by November with new notes.

I hear the idea is to nab the corruption money hidden under the mattresses. But this does not make any sense because total notes in circulation are 210B and the estimated hidden cash is only 40B.

I find it unrealistic to claim that 20% of the 1K notes are out of circulation

Here is the article giving the 210B figure:

https://www.businessdailyafrica.com/datahub/Sh1-000-note-is-king-of-transactions-in-Kenya/3815418-4989690-lo1q89z/index.html

[RV Pundit]

Interesting. I was thinking they were tyring to copy India current PM. I personally operate without cash most of time and even atm nowadays. I get money from my bank to mpesa or directly to whoever. I can go for days without touching money.

Central bank should focus on making m-pesa the main medium.....printing money in this century is old school...we just need 100 shs note to buy sodas and groceries..everything else m-pesa please.

Treasury ought to push this - because they are getting taxes from every digital transaction - but cash is just expensive for everyone - Central bank, banks and everyone dealing with cash - has to waste money and time protecting it.

Not removing but replacing then by November with new notes.

I hear the idea is to nab the corruption money hidden under the mattresses. But this does not make any sense because total notes in circulation are 210B and the estimated hidden cash is only 40B.

I find it unrealistic to claim that 20% of the 1K notes are out of circulation

Here is the article giving the 210B figure:

https://www.businessdailyafrica.com/datahub/Sh1-000-note-is-king-of-transactions-in-Kenya/3815418-4989690-lo1q89z/index.html

[Higgins the genius]

[RV Pundit]

I don't think so - CBK will slowly take out old currency and replace with new ones -the same way old tattered currency are dealt with. The 1,000 will be destroyed immediately.

[vooke]

Wrong bro,  they are replacing currency

[Higgins the genius]

Wrong bro,  they are replacing currency

[RV Pundit]

Every bank keep their cash money in Central Bank. They keep some of it in their bank vault but majority get banked in Central Bank vaults. Once the money get to Central Bank - Central Bank working with Delarue - will replace old tattered ones - with new money - and destroy the old notes. Central Bank can and do create new money - depend on the demand - in the real economy - so we have "new" money every year.

[GeeMail]

Higgins is onto something here. The small window of transition will translate into billions for some geniuses who might be sharper than Higgins. I'm reminded of the guy who took advantage of a quick blackout to slap (was it Waheguru?). There will be a blackout at the CBK deadline. Someone will slap billions into his account.

I was also hoping Pundit would comment on the effect of this matter on tangatanga church donations.

[Nefertiti]

Higgins is onto something here. The small window of transition will translate into billions for some geniuses who might be sharper than Higgins. I'm reminded of the guy who took advantage of a quick blackout to slap (was it Waheguru?). There will be a blackout at the CBK deadline. Someone will slap billions into his account.

I was also hoping Pundit would comment on the effect of this matter on tangatanga church donations.

Me too I think Arap Singh is the target. Pundit can you shed some light?

[RV Pundit]

Why do they keep missing the target. If a man is smart enough to steal - he is also smart enough to clean the cash. I would have liked this if we were retiring 1000 and 500 shillings notes..and encouraging digital money.

Me too I think Arap Singh is the target. Pundit can you shed some light?

[Nefertiti]

There must be quite some big thieves and druggies who will be smoked no doubt. The kind who stash in deposit boxes or private vaults. Cashless is good for netting more taxes not graft -you're right tax evasion is a bigger problem than graft. Cashless can nail lots of billions.

Why do they keep missing the target. If a man is smart enough to steal - he is also smart enough to clean the cash. I would have liked this if we were retiring 1000 and 500 shillings notes..and encouraging digital money.

[RV Pundit]

I doubt there is someone stupid enough to keep cash in deposit boxes - this is kenya - the anti-money laundering simply don't exist - we don't only clean our money - we clean dirty money from Congo, South Sudan, Somalia, Nigeria and name it.

Any dirty money in kenya is cleaned easily. What people keep is transaction money - a few millions here and there - for bribing and the ones they receive as bribes - before it get cleaned.

I know you're interested in Ruto...if Ruto had so much money...he would do what Mois, Kenyattas, Mwaus, Biwotts do...just buy or form a small bank whose main business is to clean the money. Ruto obviously has interests in insurance...and several other business..like real estates...that easily clean up his loot.

The way forward is to demonize - we have Mobile Money (MPESA) acting as legal tender already - CBK should be working towards digital money ( I mean Zimbwabwe has done it) - and that would be more interesting fundamental change in our payment systesm and would spark more innovation, regulation and name it - than the usual Ruto bla bla de bla.

There must be quite some big thieves and druggies who will be smoked no doubt. The kind who stash in deposit boxes or private vaults. Cash is good for netting more taxes not graft -you're right tax evasion is a bigger problem than graft. Cashless + AI can nail lots of billions.

[Nefertiti]

Ignore my vehemence for a minute, what is Uhuru's aim with this? Just to replace 1K notes with new ones? He does things zealously when it serves his parochial interests else he is the same lazy drunk. Hii inakaa political - wamepanga na Babu - to smoke your boy and his crew the Waititus. Anyway we should get more grapevine shortly.

I know you're interested in Ruto...if Ruto had so much money...he would do what Mois, Kenyattas, Mwaus, Biwotts do...just buy or form a small bank whose main business is to clean the money. Ruto obviously has interests in insurance...and several other business..like real estates...that easily clean up his loot.

[RV Pundit]

I think it copy-paste from India - and they will probably nab a few idiots if any. Ruto - you got jokes. I mean Ruto probably has Phd in these kind of stuff..it's their daily things big politicians do....looting and cleaning the loot.

What I can think is obviously the counter-feiting of kenya money is more rampant than we thought. The west africans, asians and russians have set their bases here - counterfeit currencies for kenya, somalia, south sudan and name it.

Central banks will probably hope to clean the fake money - and bring new generation currency that are hard to counterfeit.

Ignore my vehemence for a minute, what is Uhuru's aim with this? Just to replace 1K notes with new ones? He does things zealously when it serves his parochial interests else he is the same lazy drunk. Hii inakaa political - wamepanga na Babu - to smoke your boy and his crew the Waititus. Anyway we should get more grapevine shortly.