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Kenyans were yet to return Sh100 billion by end of August - CBK

CBK governor Patrick Njoroge during a press conference on September 24,2019./VICTOR IMBOTO
Central Bank of Kenya had received 116 million pieces of Sh1,000 old notes received by September 1. 
Speaking during post monetary Policy Meeting on Tuesday, CBK governor Patrick Njoroge said 91 per cent of the currency in value term collected by September 1 was less than Sh2 million.
He said 58 per cent of currency exchanged in value terms was less than Sh500,000, while 75 per cent of currency was less than Sh1 million.
At least 53 per cent of total money converted so far was done in July, he added.
Only 24 transactions were above Sh2 million with an average of Sh3.1 million per transaction.
"Tanzania and Uganda have already finished the conversion of old Sh1,000 notes," he said.
He said business and traders are at liberty to do what they can to exchange their old Sh1,000 notes before the deadline.
Njoroge said he can not say whether it is legal or not for traders to set early Deadlines.
''I can't tell whether it is legal or not. Businesses have their own way of complying to the set deadline," Njoroge said.
A bundle of Sh1,000 old notes
A bundle of Sh1,000 old notes
Image: FILE
Several businesses and traders started giving deadlines from last week, with some saying they won't accept old Sh1,000 notes starting tomorrow.
Safaricom, for instance, said M-Pesa shops will not be accepting the old notes after September 26.
ECONOMY GROWTH
Meanwhile, Kenya's economy is expected to grow 5.8 per cent in Q2 2019 before finishing the year strong at an average of six per cent.
Central Bank of Kenya said the growth although lower compared to last year is pegged generally on stable microeconomics supported by political stability.
According to Njoroge, lending to the private sector has improved to 6.3 per cent from 5 per cent in July, stimulating activities for SMEs.
He, however, cited interest cap law, ongoing global trade wars between US and China, delayed clearance of bills in counties and national government and erratic rainfall as risks to the economic growth.

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