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Bank to Exchange Old Notes for Inmates

Central Bank of Kenya (CBK) Governor Patrick Njoroge has assured prisoners who had in their possession the old sh1, 000 notes, which are being face out that they will not lose their money.

Njoroge said that prisoners arrested before 30th September will have their money converted into the new currency notes, which will be handed back to them when they are released.

The governor said CBK has been working together with other relevant authorities like the Judiciary, Directorate of Public Prosecution (DPP), the Directorate of Criminal Investigations (DCI) and the prison authorities on ways to convert the old currency that they are holding as exhibit.

At the same time, Njoroge raised concern over suspicious cash trades on wheat using dirty money in Narok County, with the governor hinting that some unscrupulous individuals could be using this opportunity to clean up the money before the set deadline.

On matters economy, the governor said that overall inflation is well under control and is expected to remain within the target range in the near term, mainly due to expectations of lower food prices with the anticipated favorable weather conditions and lower electricity prices reflecting the reduced usage of expensive power sources.

Speaking during a press briefing Tuesday, Njoroge said that in July and August, the inflation rate fell to 5.0 percent in August from 6.3 percent in July, reflecting decrease in prices of both vegetables and non-vegetable food crops due to improved supply.

“Food inflation declined to 6.7 in August from 7.9 percent in July following improved weather conditions,” he explained.

He added that on September 23rd the Monetary Policy Committee (MPC) held a meeting against a backdrop of domestic microeconomic stability, sustained optimism on economic growth prospects and volatility in international markets.

“Non- food- non- fuel (NENF) inflation  remained below 5 percent, inductive of muted  demand pressure and spillover effect of  the excise tax indexation in July  and recent increase  in fuel prices,” said Njoroge.

The governor further added that the recent increase in international oil prices is expected to exert moderate upward pressure on fuel prices, but with limited pass- through effect on inflation.

“Leading sign of economic activities such as consumption- based taxes, growth in electricity and cement consumption, imports of intermediate goods and tourist arrival indicate that growth has remained strong this year,” said Njoroge.

He continued to say that the MPC private sector market perception survey conducted this month indicate that inflation expectations remain well anchored within the target range, mainly due to expectation of lower food price following improved supply.

“The MPC survey  shows that  sustained  optimism that  economic growth will remain  strong in 2019 due to, among other factors ongoing public infrastructure investment, implementation of the big four agenda, a stable macroeconomic environment and  improved weather conditions,” noted Njoroge .

According to Monetary Policy committee’s findings, inflation expectations remained well anchored within the target range and the economy is operating close to its potential.

The committee also noted the prospective tightening of fiscal policy which would provide scope for accommodative monetary policy in the near term.  The survey noted the need to remain vigilant on the possible effect on the increased uncertainties in the external environment.

By Pauline Okeng’a


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