Government to spend KSh 15 billion to roll-out new-look currency ▷ Kenya News

The government has revealed it would spend a whooping KSh 15 billion to meet the costs of rolling out the new generation currency notes.

The process of phasing out the older notes is expected to take three years and cost will be incurred on mopping all old currencies as well as printing new ones.

CBK boss Patrick Njoroge has said the government will spend KSh 15 billion to roll-out new-look currency.Photo/Nation
Source: UGC

Appearing before National Assembly's Departmental Committee on Finance and National Planning on Tuesday, June 4, Central Bank of Kenya (CBK) boss Patrick Njoroge said the government was determined to ensure the transition was successful.

“We do not hope to go beyond three years and plan to spend KSh 15 billion in this transition process,” said Njoroge

The governor maintained that CBK followed the law in designing and printing the new notes which have become a subject of court battle.

He assured the legislators that all the old KSh 1,000 notes would be wiped out by October 1 deadline despite the petition challenging the transition process.

"We followed every aspect of the applicable laws and the Constitution of the country. We also conducted public participation. Those who did not agree went to court. We will make our case clear in court," said CBK boss

Responding to the committee's query on why CBK was reluctant to equally wipe out KSh 500 notes, Njoroge said their finding had shown the said notes were not being regularly used in financial fraud.

The governor also refused to reduce the period of phasing out the old notes arguing such a move would adversely affect the country's economy.

A section of ODM legislators led by party chairman John Mbadi have been championing for reduction of the period so as to nab those who could be hiding corruption money in their houses.

Mbadi proposed the deadline should be moved from October 1 to August.

Source: Tuko