Kenya’s Ksh1,000 note has surged to dominate the country’s cash economy, accounting for nearly 80 percent of all notes in circulation, according to new data from the Central Bank of Kenya (CBK).
The CBK report shows that total notes in circulation rose by 7 percent, climbing from Ksh 360.46 billion in 2025 to Ksh 388.41 billion in 2026. When coins worth Ksh 11.52 billion are included, overall currency circulation reached Ksh 399.93 billion.
Officials attribute the rise in the Ksh1,000 note partly to Kenya’s shift in currency printing contracts from British firm De La Rue to German company Giesecke+Devrient, which rolled out a new set of notes. The transition, coupled with increased economic activity, pushed cash outside the banking system up by 10 percent, from Ksh 292.8 billion to Ksh 323.2 billion.
Acting CEO of Consolidated Bank of Kenya, Dominic Murage, suggested the surge could be linked to either higher printing volumes of the Ksh1,000 note or citizens holding larger sums of cash. He noted that the denomination is increasingly used in high‑value transactions across sectors such as real estate, wholesale trade and transport, which demand cash‑intensive operations.
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The CBK has also raised concerns over currency management policies, printing costs and anti‑money laundering risks. In recent months, Ksh 7.39 million worth of Ksh1,000 notes were withdrawn from circulation and rendered worthless, underscoring the challenges of monitoring large‑denomination cash flows.
Analysts warn that while the dominance of the Ksh1,000 note reflects growing economic activity, it also signals potential vulnerabilities in Kenya’s financial system, particularly in tracking illicit transactions and ensuring compliance with global anti‑money laundering standards.
By Ochola Victor
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