CBK Warns Against Cash Flower Bouquets, Citing Currency Misuse Law
The Central Bank of Kenya (CBK) has warned that the popular trend of using Kenyan Shilling banknotes as decorative and celebratory materials is considered as currency misuse and is a violation of the law.
CBK in a note to the public said that it is worried about the popularity of cash flower bouquets, ornaments and similar decorations which use banknotes folded, rolled, glued, taped, stapled or pinned.
The Bank explains that such measures weaken the quality of Kenya Shilling banknotes and thus they can no longer be used for circulation. Besides, such banknotes disrupt the proper functioning of cash, handling systems such as automated teller machines (ATMs), cash, counting machines and sorting equipment.
Use of adhesives, pins, staples and other similar materials causes damage to banknotes which then face higher rejection during processing, thereby necessitating premature withdrawal and replacement of currency at an unnecessary cost to the public and the Bank, CBK said on a statement. The regulator stated that it is not against giving money as a present but such money should not be subjected to any alteration, damage or defacing of the banknotes.
Although the regulator clarified that it does not have an objection to cash being given as a gift, it made it clear that such a use should not be accompanied by an action that changes, damages or defaces banknotes in any way. CBK pointed out that currency must be kept in a condition that allows it to circulate freely and to perform its functions as a medium of exchange, unit of account, and store of value.
The Bank also reminded the public that Section 367 of the Penal Code (Cap. 63, Laws of Kenya) prohibits defacement, mutilation, or impairment of currency notes. A person who intentionally damages banknotes shall be guilty of an offence under the law.
CBK encouraged the public to choose other, non, damaging ways of giving monetary gifts and to avoid those that degrade the quality of the currency in circulation.
The Central Bank has stated its commitment to protecting the integrity of the national currency and will, therefore, continue raising public awareness and conducting stakeholder engagement to ensure the usability and public confidence in the Kenya Shilling banknotes is maintained.
