Banks will not extend working hours during last day of demonetisation
Banks will not extend their working hours to accommodate late deposits, even as the September 30 demonetisation deadline for the old 1,000 banknotes approaches.
Kenya Bankers Association (KBA) Chief Executive Officer Habil Olaka said the banks will continue operating normally on Monday, when the process of monetisation will wind up at midnight. Olaka’s pronouncement is likely to place many people in awkward position, given that they are likely to remain in possession of a valueless paper.
“If specific banks want to extend their working hours, they will have to get clearance from the Central Bank of Kenya (CBK),” he said.
Demonetisation is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency, when the current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency.
Official information from Central Bank of Kenya (CBK) indicates that so far, a total of Sh100 million out of Sh217 million has been withdraw from circulation. Njoroge said all other denominations (Sh500, Sh200, Sh100 and Sh50) will continue to circulate alongside the new generation Sh1,000 bank notes.
He said the four-month transition period should allow enough time for people to exchange their old Sh1,000 currency notes. – Noel Wandera
