CBK Retires Worn Coins as Part of Ongoing Currency Renewal Drive

The Central Bank of Kenya (CBK) is moving to clean up the physical currency in circulation by retiring large volumes of worn and damaged coins, putting about 281.67 tonnes (281,667 kilograms) of unserviceable coins up for sale to licensed metal smelters and coin-minting firms. The coins, which are no longer fit for circulation due to wear or mutilation, will be melted down after a competitive tender process that closes on January 22, 2026.

The disposal forms part of a routine currency renewal cycle in which old coins are withdrawn as new ones are introduced to maintain usability and confidence in cash transactions. CBK says it will oversee and certify the complete destruction of the coins to ensure they are rendered unusable, while the successful bidder will handle loading, transport, and smelting under strict qualification and compliance rules.

Most of the retired coins are stored at CBK’s Mombasa facility, which holds 196,373 kilograms, followed by Nairobi with 76,347 kilograms and Kisumu with 8,947 kilograms. The timing of the sale comes shortly after the closing of bids for a three-year coin-minting contract, pointing to a coordinated approach that balances withdrawal of degraded currency with replacement.

Beyond disposal, the process highlights how central banks manage the physical side of money even as digital payments grow. While electronic transactions have reduced everyday demand for small denominations such as 50 cents, Sh1, and Sh5, CBK continues to prepare new coins to support cash use in parts of the economy where pricing and transactions remain uneven or cash-dependent.

The move also takes place amid heightened public attention on CBK’s currency procurement processes, following scrutiny of a Sh14.1 billion, five-year banknote printing contract with Germany’s Giesecke+Devrient. Although the deal was flagged by the Auditor-General over procedural concerns, CBK has defended it as having National Security Council approval, underscoring the importance of transparency, auditability, and public trust in currency management.