It will take longer for customers to deposit the new currency notes using ATM machines, according to the Kenya Bankers Association.
Chief Executive Habil Olaka said this is because some of the banks that offer the ATM deposit service have yet to install a Cartridge System Software which acts as a security checker in notes.
“The systems require to be aligned to the sizes of the new notes which is a lot of work,” Olaka said.
This indicates the transition may not be quick and smooth as expected after Central Bank of Kenya introduced the new generation banknotes, in a bid to counter illicit financial flows and counterfeits.
The industry regulator released the new 50, 100, 200, 500 and 1,000 shilling notes in June 1 as the second phase of the currency, after issuance of redesigned 1, 5, 10 and 20 shilling coins in December 2018.
All the lower denomination new currency notes will continue to be in circulation alongside the current ones but the old Sh1,000 currency note will cease to be legal tender from October 1.
The CBK targets to replace all of the 217.6 million units of Sh1,000 old currency.
The new note currencies are smaller and have different features.
With this, the banks were required to reconfigure the machines to recognise the notes, acquire new cash counting machines and softwares as well as coordination with the CBK-run money clearing centers in Meru, Nyeri, Kisii and Nakuru.
However, a spot check by the Star has revealed that some banks are yet to upgrade to this software, with depositors unable to dispense the new notes.
