HomeFeaturesKenya Banknote Misuse Warning Issued By Central Bank

Kenya Banknote Misuse Warning Issued By Central Bank

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The Central Bank of Kenya (CBK) has issued a public warning against the growing practice of using Kenya shilling banknotes for decorative and celebratory displays, saying the trend damages currency and violates the law.

In a notice posted on its official X account on Monday, the central bank said it has observed an increase in practices such as cash flower bouquets, ornamental arrangements, and other displays that involve physically altering banknotes.

The bank said the issue has implications not only for the lifespan of the currency but also for the country’s cash-handling systems.

According to the CBK, the decorative use of banknotes often involves folding, rolling, gluing, taping, stapling, or pinning cash together. These actions, the bank said, compromise the physical integrity of the notes and make them unsuitable for circulation.

“Damage caused by adhesives, pins, and staples interferes with the efficient operation of cash handling and processing equipment,” the bank said, citing automated teller machines, cash counting devices, and sorting machines.

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The CBK warned that such damage leads to higher rejection rates during processing and results in the early withdrawal and replacement of currency—costs that ultimately affect both the public and the central bank.

While clarifying that it does not oppose the use of cash as gifts, the CBK emphasized that monetary gifts should not involve altering, defacing, or damaging banknotes.

The bank reminded Kenyans that Section 367 of the Penal Code criminalizes the defacement, mutilation, or impairment of currency notes, adding that anyone who engages in such acts “commits an offence under the Penal Code.”

The CBK urged the public to consider alternative, non-damaging ways of presenting monetary gifts and reaffirmed its responsibility to safeguard the integrity of the national currency.

Kenya’s warning mirrors similar measures taken elsewhere in Africa, particularly in Nigeria. In June 2021, the Central Bank of Nigeria (CBN) publicly condemned the spraying, mutilation, and defacing of naira notes, warning that offenders risk jail terms or fines.

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At the time, Aladeen Badejo, an assistant director in the CBN’s Currency Operations Department, said currency abuse carries penalties of “not less than six months’ imprisonment or a fine of not less than ₦50,000, or both.”

In 2023, the Nigerian central bank explicitly listed money bouquets as a form of naira abuse, alongside practices such as spraying, squeezing, selling, and defacing banknotes.

The CBN has repeatedly urged citizens to report violations, stating: “It is your civic duty to protect the naira. Report naira abuse today.”

Kenya’s central bank has not announced enforcement actions tied to the latest warning, but the statement signals a firmer stance as decorative cash displays become more common at celebrations.

 

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