The Central Bank of Kenya (CBK) has raised concern over a growing trend in which Kenya Shilling banknotes are being used for decorative and celebratory purposes, warning that the practice is damaging the integrity of currency in circulation.
In a public notice, the Bank noted an increase in the preparation of cash flower bouquets, ornamental displays, and similar arrangements where banknotes are folded, rolled, glued, taped, stapled, pinned, or affixed using adhesives and fastening materials. CBK said such practices compromise the physical condition of banknotes, rendering them unsuitable for circulation.
According to the regulator, damaged currency interferes with the efficient operation of cash-handling and processing systems, including automated teller machines (ATMs), cash counting machines, and sorting equipment. This leads to higher rejection rates during processing and results in the premature withdrawal and replacement of banknotes.
“These practices create avoidable costs to the public and the Bank, as damaged notes must be removed from circulation earlier than intended,” CBK said.
While the Central Bank acknowledged that cash gifting is an accepted practice in Kenyan society, it emphasized that such use should not involve any action that alters, defaces, or damages banknotes. Currency, CBK noted, must remain in a condition that allows it to circulate freely and fulfil its core functions as a medium of exchange, a unit of account, and a store of value.
CBK further reminded the public that the law expressly prohibits the defacement of currency. Section 367 of the Penal Code (Cap. 63, Laws of Kenya) makes it an offence for any person to willfully deface, mutilate, or impair any currency note issued by lawful authority.
The Bank urged individuals, event planners, florists, and gift vendors to adopt alternative, non-damaging methods when presenting monetary gifts, noting that preserving the quality of banknotes is a shared public responsibility.
“The Central Bank of Kenya remains committed to safeguarding the integrity of the national currency in circulation,” the statement said, adding that CBK will continue with public sensitization and stakeholder engagement to protect the quality, usability, and public confidence in Kenya Shilling banknotes.
