Why CBK Warns Kenyans Against Misusing Banknotes

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The Central Bank of Kenya (CBK) has warned the public against using currency notes for decorative purposes, such as making cash flower bouquets or ornaments. While giving money as a gift is acceptable, the Bank says altering, folding, stapling, gluing, or pinning banknotes damages them and makes them unfit for circulation. CBK officials explained that damaged notes interfere with cash handling operations in banks and ATMs. Machines often reject folded or mutilated notes, slowing down transactions and increasing operational costs. Over time, such practices force the Bank to withdraw notes prematurely, which is expensive and disruptive to the cash supply system.

“This is not just about aesthetics,” said a CBK spokesperson. “Currency must circulate freely. When people damage notes, they undermine their role as a medium of exchange and a store of value.”The Bank also reminded the public that Section 367 of the Penal Code makes it a criminal offence to mutilate or impair currency. Individuals who deliberately damage notes may face penalties, reinforcing the legal responsibility to protect the country’s money.

CBK urges Kenyans to handle money responsibly. While it is common to use cash in celebrations, the Bank advises giving it in a way that preserves its integrity. The notice comes amid growing reports of people using notes in bouquets and decorations for weddings, graduations, and festive events. The Bank said it will continue public awareness campaigns to protect Kenya Shilling notes and maintain a smooth cash circulation system. It also encouraged businesses and individuals to report practices that damage banknotes, ensuring that money continues to serve its key role in Kenya’s economy. By following these guidelines, Kenyans can enjoy giving money as gifts while safeguarding the value and usability of the country’s currency.

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