How change of currency notes affects economy

The unveiling of new generation currency notes on May 31,2019 marked major milestones in Kenya’s banking sector and the wider economy. First, it marked a fundamental fulfillment of Article 231 sections (2) and (4) of the Constitution of Kenya 2010. Besides, the features of the new notes also enhance inclusivity as majority of persons, including the visually impaired can knowingly transact. It may be recalled that litigations during the procurement for printing the new currencies delayed their issuance initially planned for 2015.

Second, the new currencies embody enhanced security features which can effectively deter if not minimise illicit financial transactions in counterfeits and laundering. Third, and equally important was the move to purge “black money” from mainstream economy or demonetisation of the Kenya shilling.