Supermarkets warned over issuing sweets for change

Money Markets

Supermarkets and banks have been warned against issuing alternative products as change instead of currency on a false excuse of shortage of coins. PHOTO | FILE 

By STELLAR MURUMBA, smurumba@ke.nationmedia.com

In Summary

• “The law requires that all monetary obligations or transactions entered into or made in Kenya be settled, Kenya currency unless otherwise provided for by law or agreed upon between the parties.
• “The Central Bank would like to clarify and assure the public that the country has adequate stocks of currency coins and continues to issue them pursuant to the CBK Act,” said the then governor Njuguna Ndung’u in a past statement.

The Central Bank has warned supermarkets and banks against issuing alternative products as change instead of currency on a false excuse of shortage of coins.

Through a statement published in today’s dailies, the Central Bank of Kenya (CBK) says that it is a violation of the law to deny customers the possibility of obtaining their change in Kenyan currency.

READ: Tuskys now gives airtime for change

Many supermarkets have been issuing airtime, matchboxes and sweets instead of currency coins.

“The law requires that all monetary obligations or transactions entered into or made in Kenya be settled in Kenya currency unless otherwise provided for by law or agreed upon between the parties. It is therefore a violation to deny customers the opportunity to agree to settle the transaction in any other form,” reads the CBK statement.

The banking sector regulator says that there is adequate stock of coins and issued through commercial banks to facilitate smooth settlement of transactions.

Adequate stock of coins

In October 2012, CBK injected nine million pieces of coins into circulation to ease transactions.

The regulator said the extra coins that were released pushed the total volume in circulation to 1.29 billion pieces.

“The Central Bank would like to clarify and assure the public that the country has adequate stocks of currency coins and continues to issue them pursuant to the CBK Act,” said the then governor Njuguna Ndung’u in a statement.
The CBK issues coins in denominations of Sh40, Sh20, Sh10, Sh5, Sh1 and 50 cents.

The regulator urged commercial banks to ensure that coins are re-circulated efficiently at all times to their respective customers