Cash and coins as legal tender: can a shop refuse them?
Central Bank of Kenya Act · sources read 5 Oct 2026
Notes and coins issued by the Central Bank of Kenya are the only legal tender in Kenya, and money owed in Kenya is settled in Kenya currency unless the law or the parties agree otherwise. Coins have limits: 50-cent coins are legal tender only for payments up to KSh 20, and smaller coins only up to KSh 5.
- Where
- Any commercial bank or Central Bank of Kenya office (to replace damaged notes)
Steps
- Pay with notes and coins issued by the Central Bank of Kenya. Only these are legal tender in Kenya.
- If a note is torn or damaged, take it to a commercial bank or a Central Bank office to have it replaced.
- If the Central Bank withdraws a note or coin, exchange it at face value at the places and within the period given in the Gazette notice. After the date in the notice it stops being legal tender.
Watch out
- Coins only count as legal tender up to a limit: 50-cent coins up to KSh 20, and coins below 50 cents up to KSh 5.
- The Central Bank is not obliged to exchange damaged currency.
- To be replaced, a damaged note must be more than half and in one continuous piece.
- Fake notes and coins are never exchanged for any value.
Who this covers
- Anyone paying or being paid in Kenya: money obligations made in Kenya are settled in Kenya currency unless the law or the parties agree otherwise.
Official sources (2)
- Central Bank of Kenya Act (Cap. 491) new.kenyalaw.org · read 5 Oct 2026
- Currency Services centralbank.go.ke · read 3 Oct 2026