The Central Bank of Kenya (CBK) has invited buyers for about 281 tonnes of old and damaged coins in a rare large-scale currency disposal aimed at clearing unusable stock from its vaults and making room for newly minted coins.
In a tender notice, the CBK called on qualified firms, primarily coin-minting companies and metal smelters, to bid for the purchase and melting of coins that no longer meet circulation standards. The exercise will see 281,667 kilogrammes of worn-out coins permanently withdrawn from the monetary system.
Bids for the disposal will close on January 22, 2026, shortly after the bank issued a separate three-year coin-minting tender, signalling plans to replace the withdrawn coins with new ones.
Like most central banks, the CBK routinely removes coins and banknotes that deteriorate through prolonged use. The withdrawn coins contain recoverable metals, including copper, nickel, aluminium, steel, bronze, and brass, which successful bidders can recycle for industrial purposes.
By June 2025, the CBK held coins worth Sh11.37 billion, with Sh20 coins accounting for Sh4 billion, Sh10 coins Sh4.02 billion, and Sh5 coins Sh1.95 billion. However, the bank did not disclose the exact number of individual coins included in the sale.
Current coin denominations weigh between 3.75 grammes and nine grammes. The heaviest coin ever circulated in Kenya remains the 1985 five-shilling coin, which weighed 13.5 grammes and was minted in the United Kingdom.
The CBK stressed that it will strictly supervise the destruction process to ensure all coins are permanently rendered unusable.
“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 said.
“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.”
The coins are currently stored at three CBK facilities, with Mombasa holding the largest share at 196,373 kilogrammes. Nairobi stores 76,347 kilogrammes, while Kisumu holds 8,947 kilogrammes.
Prospective bidders can inspect samples of the coins at the CBK head office before submitting their proposals. The winning firm will take full responsibility for loading, transporting, and destroying the coins and must meet strict eligibility requirements, including proven experience in large-scale smelting and ownership of suitable industrial equipment.
Despite declining demand for small denominations, particularly 50-cent, Sh1, and Sh5 coins, CBK continues to mint them. While digital payments have reduced everyday reliance on physical coins, they remain necessary for cash transactions involving uneven pricing.
In December 2018, the CBK introduced new Sh1, Sh5, Sh10, and Sh20 coins featuring wildlife symbols – a giraffe, rhino, lion, and elephant – replacing designs that previously carried portraits of former presidents.
The coin disposal tender comes against the backdrop of CBK’s Sh14.1 billion, five-year contract awarded to Germany-based Giesecke+Devrient Currency Technologies GmbH to print new banknotes, replacing British firm De La Rue.
Auditor-General Nancy Gathungu previously raised concerns over the procurement process, citing irregularities and the failure to establish a special selection committee. CBK Governor Kamau Thugge defended the award, saying the process received approval from the National Security Council.
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