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Originally published by Nation News
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June 9, 2026
6h ago

The shrinking shilling basket

The shrinking shilling basket

How the Sh1,000 note has stretched, shrunk and staggered through Kenya’s inflation story...

✨ Key Highlights

The widespread use of Kenya's largest banknote, the Sh1,000 note, for everyday purchases highlights the significant erosion of the Kenyan shilling's value due to inflation.

  • The Sh1,000 note now accounts for over 80 percent of all cash in circulation, indicating it's the de facto currency for daily transactions.
  • This trend is driven by rising commodity prices, making smaller denominations insufficient for basic needs, as noted by the Central Bank of Kenya and analyzed using data from the Kenya National Bureau of Statistics.
  • Kenyans are adapting through increased use of mobile money like M-Pesa, businesses selling goods in smaller sachets, and community bulk buying.

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