NAIROBI, KENYA—The Central Bank of Kenya (CBK) announced today that it has hired two construction companies to oversee the controlled demolition of the shilling, the national currency of Kenya. This comes at a time when CBK is implementing its strategic plan, part of which involves devaluing the shilling to boost the economy.
The CBK said that it has contracted Ndiivine Construction Limited and China Loans and Binge Corporation (CLBC) to carry out the demolition, which will involve blowing up stacks of shillings in various locations across the country. Central Bank said that the demolition will be done in phases, starting with the highest denominations of 1,000 and 500 shillings, and ending with the lowest denominations of 50 and 20 shillings.
In a presser, CBK Governor explained that the demolition is necessary to reduce the supply of shillings in circulation, and to create artificial scarcity and demand for the currency. He said that this would help to stabilize the exchange rate of the shilling against major currencies, such as the US dollar, the euro, and the pound sterling. He added that the demolition will help to stimulate the economy, by creating jobs for the construction workers, generating income for the demolition contractors, and increasing tax revenue for the government.
Orderly Demolition
The bank assured the public that the demolition would be done in a safe and orderly manner and that it would not affect the normal functioning of the financial system. “We will provide adequate security and supervision for the demolition sites and ensure that no shillings are stolen or diverted during the process. We will also compensate any individuals or businesses that may suffer losses or damages as a result of the demolition.”
The CBK urged the public to cooperate with the demolition plan and to refrain from hoarding or exchanging shillings before or during the demolition. It warned that anyone who tries to sabotage or interfere with the demolition will face severe consequences, such as fines, imprisonment, or confiscation of their assets. The CBK also advised the public to use alternative forms of payment, such as mobile money, credit cards, cowrie shells, or cryptocurrencies, during the demolition period.
The demolition is expected to start from next week and to last for six months. CBK said that it will announce the exact dates and locations of the demolition in due course. It also said that it will keep the public informed of the progress and impact of the demolition through regular updates and reports.
