CBK to Quarantine Currency Notes Deposited For a Week

The Central Bank of Kenya (CBK) has said that it will quarantine all hard currency from banks for a week, Governor Patrick Njoroge announced on Wednesday, March 18, 2020.

This is a part of the measures effected by the Central Bank to stop the spread of coronavirus in the country.

Dr. Njoroge said the CBK has already effected the emergency measures discussed earlier during their meeting with financial sector stakeholders.

Addressing the media in State House,  Dr. Patrick Njoroge said that they had removed caps on the bank and mobile money transfers, to encourage cashless transactions.

“Charges on transfers from banks to mobile wallet have been eliminated. It means I can treat my wallet as a bank account and my bank account as my wallet,” Dr. Njoroge said.

In addition, Kenyans will now be able to make bank transfers over Ksh1 million, unlike previously when all bank transactions were capped to Ksh1 million.

Furthermore, the CBK governor said that all personal loans that are current by March are eligible for extensions up to one year, but each assessment will be made on an individual basis.

Dr. Njoroge said that ”all commercial bank personal loans that were there on March 2, are eligible for an extension for up to one year. SME and corporate borrowers can approach their banks to be assessed for loan restructuring. The cost will be borne by banks. ”

Early this week, mobile money operators slashed transaction costs for amounts blow Ksh1000, with Airtel slashing costs for all amounts.

The move by CBK to quarantine hard cash is replicant of the one-China made to deep clean potentially infected banknotes.

This was informed by the World Health Organization (WHO) advisory on Tuesday, explaining that the infectious Covid-19 virus could be carried on the surface of banknotes for several days.

Dr. Njoroge added that the uncertainty the virus might have to the economy, the banks could consider moratoriums to borrowers depending on how the situation will be assessed.

President Uhuru Kenyatta thanked the banks for their quick action and promised to render the necessary support.