Why Tanzania has stopped conversion of Kenyan money

Why Tanzania has stopped conversion of Kenyan money

It is now impossible to convert Kenyan currency to Tanzanian currency. This follows a decision by the Bank of Tanzania to suspend exchange on Friday June, 7 in a bid to stem what they called illicit financial flow. The Tanzanian bank acted at the behest of the Central Bank of Kenya (CBK).

The statement read in part that, ‘CBK has suspended currency conversion and repatriation of all Kenyan currency to restrict illicit flows into the Republic of Kenya, and will not accept Kenyan currency with immediate effect.’

This means anyone who had hidden money in Tanzania or had a hope of doing conversions there will not be able to do so, hence rendering the current currency useless.  The CBK launched new notes recently during Madaraka Day catching many by surprise. The government then announced that the current KES 1000 shilling note will be obsolete by Oct 1, 2019.

Unscrupulous traders and politicians are believed to have stashed tonnes of such notes in homes and and would be seeking to use any avenue to make sure they exchange them without attracting the attention of the CBK, the Directorate of Criminal Investigation and Kenya Revenue Authority. It is not clear whether the CBK had given a similar directive to all the East African Community members, which is highly possible.

Read the full statement from Bank of Tanzania below:

Author: Moshek Africa

Moshek Africa is a digital media research and development web service. The website offers informative content for a large audience interested in varied information. With a lot of interest in Kenya and the East African region tech, business, travel spaces, and Africa at large. It also covers universal content of interest to the world.