Author: Mary Wangari

Kenyan government’s move  to introduce new currency has brought ripple effects, in the neighbouring countries.

On June, 7th 2019, the Tanzanian government suspended the conversion as well as the extradition of Kenyan bank notes in a bid to combat counterfeited money.

“CBK has suspended currency conversion and repatriation of all Kenyan currency to restrict illicit financial flows and counterfeits into the Republic of Kenya, and will not accept Kenyan currency with immediate effect,” read the official statement.

The Bank of Tanzania also received a directive to immediately freeze the Currency Collection Account of the CBK even as the government amplifies efforts to stop illicit financial flows (IFF) in the country.

Factors that prompted demonetisation

The increase in cases of money laundering and other forms of corruption in the recent times countrywide has reached an alarming level. It therefore came as a great relief when the CBK issued new currency …

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