CENTRAL BANK OF KENYA
Remarks by
PPRROOFF.. NNJJUUGGUUNNAA NNDDUUNNGG’’UU
LLAAUUNNCCHH OOFF TTHHEE NNAATTIIOONNAALL ““CCHHOOMMOOAA CCOOIINNSS””
Central Bank of Kenya, 6th Floor
Monday, November 26, 2012

Mr. Richard Etemesi, Chairman, Kenya Bankers Association;
Mr. Habil Olaka, Chief Executive, Kenya Bankers Association;
Mr. Alfred Nganga, Chairman, Retail Traders Association of Kenya;
CEOs of Commercial Banks;
Chairmen and CEOs of Represented Supermarkets;
Distinguished Guests;
Ladies and Gentlemen:
I am honoured to launch the 2012 National Coin Week, we dub it “Chomoa
Coins Campaign” which starts today, November 26th and ends on December
7th, 2012.
As you are all aware, the Central Bank of Kenya is charged with the responsibility
of ensuring availability of adequate currency, that is, Banknotes and coins, across
the country. Pursuant to this mandate, the Central Bank of Kenya has over the
years endeavoured to ensure that there is adequate supply of coins. However, in
the recent past, last year to be precise, concerns started to emerge among
members of the public regarding challenges in obtaining coin-change at retail
outlets.
In response to these concerns, the Central Bank together with key stakeholders
such as the Kenya Bankers Association (KBA), Supermarkets and the Matatu
Owners Association, launched the National Coin Week initiative in July 2011. The
campaign was very successful as members of the public brought out large amounts
of coins into circulation, thus alleviating the perceived shortage. However, in the
early part of this year, the momentum seemed to have waned and reports of
perceived coin shortages have resurfaced again.
Ladies and Gentlemen: it is against this background that the Central Bank of
Kenya has once again partnered with key stakeholders such as the Media, the
Kenya Bankers Association (KBA) and the Retail Traders Association of Kenya
(RETRAK) among others, to promote the re-circulation and use of coins. As

mentioned last year, it is the view of the Central Bank that the current perceived
shortage of coins could be addressed through circulation of the coins presently
held by the public in their homes, tills, piggy banks, car pouches etc.
The purpose of the coin week campaign therefore is to:
(cid:120) Sensitize the Mwananchi on the importance of coins in the economy;
(cid:120) Encourage the public to exchange coins for notes;
(cid:120) Promote the habit and culture of using coins in day to day transactions;
(cid:120) But also encourage a cost-effective circulation of coins.
Ladies and gentlemen: as you are aware, coins constitute low-value units of
our currency structure and adequate availability at all times everywhere cannot be
over-emphasized. Most of you must have witnessed situations at Points of Sale
(POS) and retail outlets where token items such as sweets or matchboxes are
offered in place of coin-change. This is a practice that we would like to see
stopped. Coins should be readily available in all retail outlets to ensure proper
pricing and avoid undue retail price hikes or issuance of token items in lieu of
coins.
The Central Bank through the commercial banks has continued to ensure that
adequate quantities of coins are in circulation. As of today, the Central Bank of
Kenya has issued into circulation over 1.31 billion pieces of coins in various
denominations with an estimated face value of Ksh.5.1 billion. We believe these
coins are more than adequate to serve the economy. In the month of October
2012 alone, CBK released 9 million pieces of coins into circulation, while in
November 2012, a further 12 million pieces have so far been released, yet the
challenges on coin circulation still persist in some segments of the market. It must
be that it is the circulation problem in the country.
We believe that the bulk of coins are held by members of the public either in their
homes, offices or car pouches or is it becoming expensive to make trips to
the bank for coins? This trend seems to be continuing and we need to find a
mechanism to end or discourage it. It is therefore clear that the problem of

inadequacy of coins in circulation cannot be addressed by adding new coins but
by ensuring that there is an efficient mechanism for re-circulating existing coins
within the economy.
The 2012 National Coin Week has therefore been appropriately dubbed
“Chomoa Coins” and involves a variety of media activities which have been
mooted by the Central Bank, KBA, Supermarkets and the other key stakeholders.
Besides educating the public on the importance of coins, the key campaign aims
at:
(cid:120) Encouraging the general public to utilize coins in making low value
payments; (cid:3)
(cid:120) Calling upon everyone keeping coins in homes, offices, cars etc. to instead
circulate them by dropping them at designated change points in
supermarkets and banks;(cid:3)
(cid:120) Informing the general public and traders in particular that they have a
responsibility towards their currency and should accept all legal tender
coins that are in circulation (cid:3)
(cid:120) Partnering with commercial banks for a most cost-effective way to ensure
circulation.(cid:3)
The Central Bank in collaboration with all the stakeholders will continue to
explore ways of addressing bottlenecks in the coin circulation system and strive to
provide solutions. The Bank also encourages the development of innovative
approaches and mechanisms, including use of technologies that facilitate the
efficient distribution, exchange and circulation of coins.
May I also take this opportunity to thank all stakeholders for supporting this event.
Ladies and gentlemen: with these brief remarks, it is now my honour and
pleasure to formally launch the 2012 ‘National “CHOMOA COINS”
Campaign’.
Thank you and God bless you