Here is why new currency notes are wearing out fast
A man holds the new Kenyan currency bank notes.
What you need to know:
- Kenyans express concern over quality of new generation bank notes.
- The ‘bad handling habits’ cause significant wear and tear.
Mishandling of currency notes by Kenyans is to blame for quick wear and tear, the Central Bank of Kenya (CBK) has said.
CBK Governor Patrick Njoroge Tuesday said users, especially matatu crew, have a habit of folding the bills excessively, keeping them in sweaty parts of the body and in shoes. Those were among the main reasons for the new notes wearing out quickly.
The ‘bad handling habits’, Dr Njoroge told the Senate, cause significant wear and tear.
“The Sh50 and Sh100 are the most popular denominations,” he said. They circulate quickly and are thus subject to significant mishandling, he added.
The explanation follows concerns of poor quality new generation currency notes, despite the huge cost taxpayers have incurred since their introduction in June 2019.
Not as good
Dr Njoroge was hard-pressed to explain how the CBK claims the new currency notes are of better quality than old ones when Kenyans are complaining of faster rate of wearing out, compared to users’ experience with the old money.
“When we go round talking to people and testing the new currency, it doesn’t fit the response you offered. Nine out of 10 Kenyans think that the quality of the currency is not as good as of the older notes,” committee chairperson Charles Kibiru said.
The Kirinyaga senator and his team queried why Kenyans never complained of fast wear and tear when they handled the old generation currency, yet they handled them the same way.
They urged CBK to commission a survey to establish the source of many concerns from Kenyans, even as it considers encouraging less cash transactions in the economy.
Dr Njoroge told senators that CBK had withdrawn almost all the Sh50 denomination notes issued between June and December 2019, which were too old for circulation.
Pushed to respond
He admitted that Kenya did not procure the best of quality in the design of new generation currency notes, adding that CBK went for quality that was close to other African countries.
“We looked at three things... the feel, aesthetic and security features. We [chose] a comparable quality with other countries like ourselves,” Dr Njoroge said.
The governor had appeared before Senate’s Finance and Budget Committee to respond on the issue, as senators pushed him to respond to questions Kenyans have been asking.
This was after senators considered his written response unsatisfactory.
“Why can’t we make even the Sh50 note better if it’s the one circulating more? The Sh50 note is of very low quality yet it is the hottest in terms of circulation,” Senator Rose Nyamunga noted.
