Author Topic: Kenya: Give the coins back! We don't want them.  (Read 1191 times)

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Offline Figleaf

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Kenya: Give the coins back! We don't want them.
« on: September 28, 2009, 02:54:51 PM »
Central Bank blames hoarding for coin shortage
Runaway inflation has fuelled price increases by retailers, almost pricing out the lower denomination coins.

By Emmanuel Were, Posted Monday, September 28 2009 at 00:00

The Central Bank of Kenya has asked members of the public to put back into circulation any coins they may be holding by depositing or handing them over to commercial banks or retail outlets.

The bank said this would ease an artificial shortage that has hit shoppers and retailers.

Retailers are facing difficulties giving their customers small change following the scarcity of the coins especially the one shilling and 50 cent ones. This has forced most shoppers to buy extra goods, especially confectioneries, to add up the change.

“Perhaps it is the habit of keeping coins in our homes, offices and cars that is creating the impression that coins are unavailable in retail outlets,” said the Central Bank Governor, Prof Njuguna Ndung’u.

Prof Ndung’u said all coins ranging from the five cent to the Sh40 coin are still recognised as legal tender and that CBK had made sure there were sufficient coins in circulation.

He said consumers who had difficulties in depositing the money with the retail outlets could contact the CBK.

“Should any member of the public experience any difficulty using coins as a means of exchange or in depositing them with a commercial bank, please contact any branch of the Central Bank for assistance,” said the governor in a press release.

But this will face a challenge as bankers in an earlier interview with the Business Daily had hinted at the increased costs of handling the coins.

“If you arrive in a bank queue and the person in front of you is depositing Sh100, 000 in properly bundled Sh1, 000 notes and another in mixed coins, which takes the cashier longer? Which requires more storage and is easier to move in and out of a vault?

Which is easier to re-distribute to customers making withdrawals?” posed CFC Stanbic managing director, Mr Mike Du Toit in an earlier interview with the Business Daily.

Similar challenges are anticipated in the public transport systems where most operators do not accept the 50 cent coin and in retail outlets.

Source: Business Daily Africa
« Last Edit: November 06, 2013, 10:51:47 PM by Afrasi »
An unidentified coin is a piece of metal. An identified coin is a piece of history.

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Re: Kenya: Give the coins back! We don't want them.
« Reply #1 on: October 01, 2009, 05:15:42 AM »
I am still trying to get an example of each of the 2005 50c. & 20/- coins from Kenya as a way towards completing a type set of the coins that have been in circulation since President Mwai Kibaki came to power in 2002.