Do not accept sweets for change, CBK to Kenyans

The Central Bank of Kenya has warned supermarkets and banks against issuing alternative products as change instead of currency on a false excuse of shortage of coins.

Through a statement, CBK said it is a violation of the law to deny customers the possibility of obtaining their change in Kenyan currency.

Many supermarkets have been issuing airtime, matchboxes and sweets instead of currency coins.

The law requires that all monetary obligations or transactions entered into or made in Kenya be settled in Kenya currency unless otherwise provided for by law or agreed upon between the parties.

It is, therefore, contrary to the law to deny customers the opportunity to agree to settle the transaction in any other form, as the law states.

The banking sector regulator said there is adequate stock of coins and issued a notice commercial banks to facilitate smooth settlement of transactions.

In October 2012, CBK injected nine million pieces of coins into circulation to ease transactions.

The regulator said the extra coins that were released pushed the total volume in circulation to 1.29 billion pieces.

The Central Bank Governor, then Prof. Njuguna Ndung’u in a statement affiemed the public that the country has adequate stocks of currency coins and continues to issue them pursuant to the CBK Act.

He further added that CBK issues coins in denominations of Ksh 40, 20, 10, 5,1 and 50 cents.

The regulator urged commercial banks to ensure that coins are re-circulated efficiently at all times to their respective customers.

CBK has urged any member of the pubic experiencing difficulty using coins as a means of exchange or in depositing with commercial banks to contact any branch or currency centre of CBK for assistance.