10 August 2010
Nairobi — The Central Bank of Kenya (CBK) has adopted a policy aimed at ensuring currency in circulation is unsoiled and properly handled at all levels of life cycle.
Governor Njuguna Ndung'u said the policy is necessitated by need for clean cash as printing and minting currency is not only being expensive, but also imposes an extra burden on tax payers.
"Improper handling of currency depreciates the banknotes and coins faster than they ought to and as a result, the Central Bank will have to replace these with new ones," he said in CBK's quarterly newsletter.
Prof Ndung'u said the regulator will continue striving towards improvement of cleanliness of money in circulation by having a continuous withdrawal process of unfit notes and supply of clean currency.
He said improper currency handling leading to its mutilation is punishable under the laws of Kenya described in the Penal Code Cap 63 Chapter 36.
Prof Ndung'u urged people who handle money, including public transport industry players, to avoid folding or crumpling the notes as this drastically increases their wear and tear.
"Genuine banknotes in circulation have some security features which clearly distinguish them from counterfeits. However, these features are washed away partially or completely when in contact with liquids especially those with detergents or chemicals" he said.