The Central Bank of Kenya (CBK) has put approximately 281 tonnes of old and damaged coins up for sale, in a rare move to dispose of worn-out currency.
In a tender notice, the bank invited eligible companies, mainly metal smelting foundries and coin-minting firms, to purchase the coins for melting, as they are no longer fit for circulation.
This initiative will help the CBK clear 281,667 kilogrammes of mutilated coins from its vaults while preparing to replace them with newly minted currency.
Bids for the coins will close on January 22, 2026, following a three-year coin minting tender that closed last month, signalling the regulator’s intent to introduce fresh coins. Like most central banks, the CBK routinely withdraws coins and banknotes that have deteriorated over time.
These coins contain recoverable metals including copper, nickel, aluminium, steel, bronze, and brass, which can be recycled for industrial use. By June 2025, the CBK held coins worth Sh11.37 billion, with Sh20 coins valued at Sh4 billion, Sh10 coins at Sh4.02 billion, and Sh5 coins at Sh1.95 billion.
The bank has not disclosed the exact number of coins on offer, noting that current coins weigh between 3.75 grammes and nine grammes. Kenya’s heaviest circulating coin remains the 1985 five-shillings coin at 13.5 grammes, a seven-sided copper-nickel piece minted in the UK.
The CBK has made it clear that it will oversee the destruction of the coins and certify that the entire consignment is 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 stored across three CBK locations, with the largest stock of 196,373 kilogrammes at the Mombasa branch. Nairobi holds 76,347 kilogrammes, while Kisumu has 8,947 kilogrammes.
Interested firms can view sample coins at the CBK head office before submitting their bids. The winning bidder will be responsible for transporting the coins from CBK warehouses and managing the melting process.
The tender also outlines strict qualification requirements, including industrial equipment ownership, substantial experience, and evidence of large-scale smelting projects.
Despite the declining use of coins, especially smaller denominations such as 50 cents, Sh1, and Sh5, the CBK plans to continue minting new ones. Everyday transactions increasingly rely on digital payments, but coins remain necessary for completing purchases with uneven prices.
In December 2018, the CBK released a batch of new coins under the 2010 Constitution, featuring a giraffe, rhino, lion, and elephant on the Sh1, Sh5, Sh10, and Sh20 coins, respectively, replacing portraits of former presidents.
The latest tender comes months after the CBK signed a Sh14.1 billion five-year contract with Germany’s Giesecke+Devrient Currency Technologies GmbH (G+D) to print new banknotes, taking over from Britain’s De La Rue.
Auditor-General Nancy Gathungu raised concerns over the opaque award of the contract, noting that CBK management did not set up a special committee to oversee the search for a currency printer.
CBK governor Kamau Thugge defended the move, saying the procurement was approved by the National Security Council.
