With little over a week to the deadline for withdrawal of the old Sh1,000 shilling note, confusion has gripped the retail sector. Traders are conflicted on how to treat the notes on the last day, long after banks, which should exchange the old with the new, have closed for business on the evening of September 30.
The retailers have a valid concern. No business wants to be left holding worthless paper, certainly not when it has an implication on cash flow. And so retailers, caught up in such as a quandary have been saying they will not accept transactions made using the old notes a few days to the D-Day. Now some legal experts warn retailers that their refusal exposes them to regulatory fines and suits.
In this discourse, the Central Bank has been silent. The regulator has been running a campaign reminding Kenyans to exchange the old notes before the deadline, but has been mute on the D-Day transactions.
The CBK should take note of what the retailers are saying and issue a direction.
Compliance should not come as a risk to being in business as a going concern.
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