A deal worth Sh14.2 billion has been signed between Kenya and German banknote printer Giesecke+Devrient for the supply of new currency notes over the next five years.
This was revealed on Wednesday by the Central Bank of Kenya (CBK) Governor Kamau Thugge who was appearing before the National Assembly Committee on Finance and National Planning.
Parliament had summoned Dr Thugge to provide details about the deal.
Dr Thugge explained that Giesecke+Devrient had taken over the role from British printer De La Rue, which previously handled the job.
The decision was made following a classified procurement process, driven by concerns over a potential shortage of banknotes that could have had serious economic and security repercussions.
“The classified procurement process was therefore necessary to avert a stock-out crisis. The procurement was conducted under the Public Procurement and Disposal Act, and with the approval of the National Security Council and the Cabinet,” Dr Thugge told MPs.
The switch to a new currency printer was prompted by De La Rue’s decision to close its Nairobi printing facility in Ruaraka.
De La Rue, in which the government holds a 40 percent stake, ceased operations in the financial year ending March 2023 due to a lack of new orders.
The closure cost Sh2.4 billion in severance, legal fees, and asset write-offs.
Dr Thugge disclosed that the cost of the new banknotes, based on the exchange rate at the time of the contract signing, is $109,422,740—lower than the $112,856,000 spent on the 2019 series notes.
- MPs probe CBK’s deal with German firm for new banknotes
- CBK announces new features and signatures for banknotes
Under the five-year agreement, Kenya will receive 2.04 billion banknotes to replace damaged or worn-out notes. The new notes will include 460 million Sh50 notes, 690 million Sh100 notes, and 260 million Sh200 notes.
Additionally, Kenya will receive 170 million Sh500 notes and 460 million Sh1,000 notes. The Sh1,000 notes, featuring enhanced security features, are already in circulation.
The new banknotes will display the signatures of Dr Thugge and Treasury PS Chris Kiptoo, and will be dated 2024.
They will include new security threads with color-changing effects unique to each denomination, though the overall design will remain consistent with the 2019 series.
CBK also revealed that printing 1,000 banknotes with Giesecke+Devrient will cost Sh6,842 ($53.5), compared to Sh6,198 ($48) for the 2019 series by De La Rue.
“We have looked at the cost per 1,000 pieces of banknotes in the old and new contract. There is an increase in cost of about 11 percent,” Dr Thugge noted.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
