Four Transformative Changes to Banknotes by CBK

The Central Bank of Kenya (CBK) has unveiled a series of updates to all denominations of Kenyan banknotes. This move marks a significant step in enhancing the security features of the currency while maintaining its design continuity from the 2019 series.

Here are the key changes and features of the new banknotes:

Key Changes:

1. New Signatures:
   • The banknotes will now feature the signatures of the CBK Governor and the Principal Secretary of the National Treasury, Chris Kiptoo.
2. Updated Print Year:
   • All notes will bear the print year 2024, distinguishing them from earlier versions.
3. Enhanced Security Threads:
   • The banknotes will be equipped with new security threads that have color-changing effects, aimed at curbing counterfeiting.

Denominations Affected:

• The changes apply to all denominations: Ksh50, Ksh100, Ksh200, Ksh500, and Ksh1,000.

Continuity and Co-Circulation:

• Despite these changes, the CBK has assured that the current banknotes will remain legal tender. The new notes will circulate alongside the existing ones, ensuring a smooth transition.

Detailed Features of the New Banknotes:

1. Tactile Features:
   • Users will be able to feel the Kenya name and the numerical value of the note, enhancing accessibility for the visually impaired.
2. Watermark and Light Features:
   • When held up to the light, the new banknotes will reveal a watermark of a lion’s head, the text “CBK,” and the denomination value visible from both sides.
3. Security Thread Visibility:
   • The security thread will appear as a continuous line when the note is backlit.
   • Tilting the note will reveal a color-specific thread and a golden band indicating the denomination, which is visible under ultraviolet light.

Economic Context:

• This announcement came on a day when the Kenyan shilling traded at Ksh130.00 against the US dollar at the opening of the Nairobi Stock Exchange (NSE), reflecting the broader economic environment in which these changes are being introduced.

Implications:

These updates by the CBK aim to reinforce the security and integrity of Kenya’s currency, making it more difficult to counterfeit. At the same time, the tactile and visual enhancements improve usability and inclusivity. The phased introduction of the new banknotes, starting with the Ksh1,000 denomination, ensures that the public and businesses have ample time to adapt.

This proactive approach by the CBK reflects a commitment to maintaining a robust and secure currency system that meets modern standards and addresses the evolving needs of the economy.