Deputy President William Ruto’s allies christened Team Tangatanga have faulted October 1 deadline set by the Central Bank of Kenya to phase out old Ksh1000 banknotes.
Speaking during a church service in Kahawa Wendani where they had accompanied Deputy President Ruto on Sunday, legislators led by Kimani Ichungwa said the deadline should be revised.
This is following a directive by the CBK on Saturday to make current Ksh1000 notes obsolete on October 1.
Read: UK, America Envoys Hail CBK’s New Banknotes Directive To Curb Thievery
The directive by CBK Governor Patrick Njoroge is expected to disrupt illicit financial flows.
The Kikuyu MP said in order to fast track acquisition of money stashed in people’s houses, the deadline should be moved to July 1.
He argued that the October deadline is quite far, adding that the money should be released to develop the economy.
Also Read: CBK Governor Njoroge Launches New Bank Notes As He Announces Abolishment of Old Ksh1,000 Notes
“The Central Bank Governor said we have four months up to October. In my opinion that it to far away. Kenya’s financial year starts in July so if it is possible, the president should make that the deadline for the validity of the Ksh 1000 notes,” Ichungwa said.
He noted that increased liquidity would enable payment of pending bills as directed by President Uhuru Kenyatta.
The sentiments were shared by a number of other leaders who graced the church service.
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In his speech during the Madaraka Day fete, President Kenyatta directed ministries and government agencies to settle pending bills that do not have audit queries by June 30.
The Head of State noted that the pending bills have soured relations between investors and the government.
“This has also reduced overall spending and business activity in our economy. To alleviate this situation, I hereby direct that all accounting officers to settle all pending payments that do not have audit queries before the end of the current financial year on June 30, ” President Kenyatta said.
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Governors were also directed to clear pending bills that have hit the Sh100 billion mark.
The President was responding to complaints by contractors and suppliers of national and county governments over pending bills.
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