The Central Bank of Kenya (CBK) has announced a significant initiative to dispose of approximately 281 tonnes of old and unserviceable coins, marking a crucial step in maintaining the integrity and quality of the nation’s currency.
This move involves inviting eligible metal smelting foundries and coin-minting firms to bid for the purchase and melting of these worn-out or mutilated coins, which are no longer fit for circulation.
The tender, closing on January 22, 2026, aims to clear 281,667 kilograms of damaged coins currently stored across three CBK locations: Mombasa (196,373 kg), Nairobi (76,347 kg), and Kisumu (8,947 kg).
This disposal process is tightly controlled, with the CBK making it mandatory to witness and certify the destruction of the entire consignment to ensure the coins are rendered unusable.
As a CBK official stated, “It is expected that the bidder will notify the bank when ready to undertake the smelting/destruction and invite the bank’s team to witness the smelting and confirm in writing that the smelting is done to the satisfaction of the bank”.
This exercise is a routine function for central banks globally, as they regularly withdraw deteriorated currency to recover valuable metals like copper, nickel, aluminum, steel, bronze, and brass for industrial recycling.
The CBK’s decision to sell these coins comes shortly after bids closed for a three-year coin minting tender, signaling a coordinated “withdraw-and-replace” cycle for Kenya’s currency.
Despite a decline in the circulation of lower denominations due to the rise of digital payments, the CBK remains committed to minting new coins to support cash transactions where uneven pricing still exists.
