The Central Bank of Kenya (CBK) has recently made headlines by putting up for sale approximately 281 tons of old and damaged coins, with a face value estimated at around Sh11.3 billion.
This move, announced through a public tender, marks a significant step in the bank’s efforts to manage the country’s currency supply efficiently.
But why is the CBK seeking to offload such a massive hoard of coins? well, the core of this decision is of coin degradation.
Over years of circulation, Kenyan coins ranging from Sh1 to Sh20 denominations accumulated wear and tear, mutilation, or general deterioration.
These unserviceable coins can no longer function reliably in everyday transactions, as they may be bent, corroded, or otherwise compromised.
By June 2025, the CBK’s total coin holdings were valued at Sh11.37 billion, with significant portions in Sh20 (Sh4 billion), Sh10 (Sh4.02 billion), and Sh5 (Sh1.95 billion) coins.
The 281,667 kilograms of coins targeted for sale represent a substantial chunk of this inventory that has reached the end of its usable life. Clearing vault space is another key driver.
The CBK’s storage facilities in Nairobi, Mombasa holding the bulk at 76,347kg and 196,373 kg respectively, and Kisumu are burdened with 8,947kg of these outdated pieces. Disposing of them frees up room for freshly minted currency.
This sale comes hot on the heels of a three-year coin-minting tender, signaling a “withdraw-and-replace” cycle to refresh the cash ecosystem.
In an era where digital payments are surging, maintaining a functional physical currency supply remains crucial for sectors where cash is still king, such as informal markets and rural areas.
The CBK is invited for potential bidders among the the qualified metal smelters and coin-minting firms to visit the Central Bank to see the coins first. The tendering process came to a close on January 22, 2026.
The Winning bidders shall buy the coins in bulk, handle loading, transport, and smelting under CBK supervision, ensuring the coins are fully destroyed and prevent misuse by making sure they cannot re-enter circulation.
While the face value is over 11.3 billion, the actual sale price is expected to be much lower, around Sh6 million just a reflection of the scrap value of materials the coins were made of like copper, nickel, aluminum, steel, bronze, and brass.
CBK staff and their relatives were barred from participating to maintain transparency.
This initiative underscores broader trends in currency management. Central banks worldwide routinely recycle degraded money to recover metals and sustain economic stability.
For Kenya, it highlights the tension between advancing fintech and preserving traditional cash systems.
As digital wallets gain traction, such disposals may become more frequent, but they also emphasize the enduring role of coins in daily life.
This move is not just about decluttering but a way of ensuring Kenya’s currency remains robust and reliable.
With bids now closed, the next phase will see these billions in old coins transformed into recycled materials, paving the way for a brighter future in Kenyan pockets
By NairobiJournal