NAIROBI – The Central Bank of Kenya (CBK) has initiated a rare, large-scale currency disposal, inviting bids from qualified companies to purchase and destroy approximately 281 tonnes of old and damaged coins. The move aims to clear vaults of unusable currency and pave the way for the introduction of new coins into the economy.
A Massive Inventory of Unusable Currency
The tender notice calls for the purchase and smelting of 281,667 kilogrammes of coins that are no longer fit for circulation. The coins, which contain recoverable metals like copper, nickel, aluminium, and brass, are stored across three CBK branches: Mombasa (196,373 kg), Nairobi (76,347 kg), and Kisumu (8,947 kg).
“As part of the evaluation process, CBK will require a commitment in writing that the successful bidder will allow the bank to inspect and confirm the smelting of the entire consignment of the old coins,” the bank stated in its tender requirements.
The CBK holds a significant stock of coins; as of June 2025, the total face value of coins in its vaults was Sh11.37 billion. This inventory includes Sh20 coins (Sh4 billion), Sh10 coins (Sh4.02 billion), and Sh5 coins (Sh1.95 billion).
Strict Process for Destruction and Replacement
The disposal process is designed to be transparent and secure. The winning bidder must notify the CBK before beginning the smelting so that bank officials can witness and certify the complete destruction of the coins, ensuring they are permanently removed from the monetary system.
This tender follows the recent award of a three-year contract to mint new coins, signalling the bank’s intent to refresh the physical currency in circulation. It also comes after a separate Sh14.1 billion, five-year contract was awarded to Germany’s Giesecke+Devrient Currency Technologies GmbH to print new banknotes.
Evolving Currency Use in a Digital Age
The disposal highlights the changing role of physical cash. While digital payments have reduced daily reliance on small-denomination coins, they remain essential for transactions with uneven amounts. Despite declining demand for coins like the 50 cents, Sh1, and Sh5, the CBK continues to mint new ones to maintain an adequate supply for cash-based commerce.
The bid submission deadline is January 22, 2026. Interested companies, primarily coin-minting firms and metal smelters with large-scale industrial experience, can view coin samples at the CBK head office before submitting their proposals.
