CBK transfers Sh7.4b to government to aid coronavirus fight

CBK Governor Patrick Njoroge with President Uhuru Kenyatta during the transfer of Sh7.4b cheque.

 

The Central Bank of Kenya (CBK) has transferred Sh7.4 billion to the Government Consolidated Fund, in support of the fight against coronavirus.

In a statement on Friday, CBK said the money totaling to Sh7,387,674,000 was collection from the demonetisation exercise concluded last year in September.

“The demonetisation of the older series Sh1,000 notes was announced on June 1, 2019, aimed at addressing the grave concern of illicit financial flows, and the emerging risk of counterfeits. At the conclusion of the exercise, Sh7.388 billion worth of the older 1,000 notes were rendered worthless,” CBK said.

This, it said was in line with Sections 9 and 51 of the CBK Act, and that the transfer was approved by the CBK Board.

“The transfer was executed by crediting the Ministry of Finance’s Deposit Account at CBK.”

Majority of the money was cash held by individuals who were unable or unwilling to subject themselves to the robust checks the institution had put in place.

CBK also said that at the conclusion of the exercise, the demonetised money was booked as realized income on September 30, 2019, categorised as “miscellaneous receipts” in its financial statements.

On June 1, 2019, President Uhuru Kenyatta launched Kenya’s new generational currency. Kenyans were given five months until October to phase out the old Sh1,000 notes.

The new currency notes included Sh50, 100, 200, 500 and 1000 denominations.

The funds will now be directed towards the fight of the coronavirus pandemic that has battered economies worldwide.

Kenya has reported seven confirmed cases and the government has outlined strict measures including an emphasis on social distancing in public service vehicles and work places to curb the spread of the highly contagious virus.

The disease has claimed over 10,000 lives globally and infected 255,729.