Kenya Bank Defends New Banknotes
Controversy sets in over the weekend ,after the introduction of new notes in Kenya with new security features to replace the current notes .
The move is being challenged in court over the fact that it features a statue of the country’s first president, Jomo Kenyatta.
This move was said to be against the law of the country as, The constitution says notes should not feature the portrait of an individual.
One side of the notes features a statue of Mr Kenyatta rather than a formal portrait . The central bank defended its right to withdraw the currency after the court challenge.
Bank Governor Patrick Njoroge says the so-called demonetization followed all applicable laws and called the court battle an inconvenience.
President Kenyatta has faced widespread criticism for large-scale corruption in his government and the demonetization is seen as a direct response to that.
Officials and well connected businessmen in corrupt cartels are believed hold hundreds of millions of illegally obtained shillings in cash.
Withdrawing the 1,000 shilling note is expected to close many money laundering avenues as the old notes have to be exchanged for the new notes..
demonetization has taken place in other parts of the world such as when the European Union adopted the euro.
In Nigeria, an anti-corruption crackdown was conducted by Muhammadu Buhari in 1984 when he was military head of state that saw old notes banned.
Ghana did the same in 1982 to help with tax evasion.