Will recall of the old Sh1,000 notes stem rampant corruption?

The new Central Bank of Kenya (CBK) directive on the old Sh1,000 notes in circulation will be a setback for those involved in economic crimes. Although the directive that states the old notes will be withdrawn from circulation on October 1, 2019 is a temporary measure, it will go a long in fighting graft.

The truth of the matter is that those who are filthy rich because of corrupt proceeds no longer keep their ill-gotten cash in the banks, but in their heavily guarded houses. This follows the introduction of stiff rules by the Government that compel individuals to disclose the source of large amounts of money to bank managers.

By declaring that the current Sh1,000 notes will be invalid in four months’ time, the State has struck at the heart of illicit financial flows. People with bags of money in their bedrooms will now be forced to reveal where they got the cash from. Those who won't heed the directive will lose the money in their possession.

In the long run, the directive will assist to tame corruption. Going forward, people will be forced to keep their money in the bank and disclose the source of the same if required to do so.

Mr Simatwa is an opinion leader from Saboti Constituency.