How to make new currency work for Kenya’s economy

In the next few months, economists shall pay close attention to how the Central Bank of Kenya will navigate the sensitive process of demonetisation. So why have some countries successfully executed demonetisation while others have miserably failed?

The simple answer is that money has three distinct functions. It serves as a medium of exchange, as a store of value and as a unit of account. Countries that have successfully conducted demonetisation have effectively managed to change the medium of exchange without significantly disrupting the stored value.