CBK turns to German firm for printing new currency notes

Central Bank of Kenya (CBK) has engaged an undisclosed German firm to print new banknotes. This decision, announced in a Wednesday morning statement, marks a significant shift from the previous arrangement with British printer De La Rue’s local subsidiary, which ceased operations last year.

The new currency series will cover Sh50, Sh100, Sh200, Sh500, and Sh1,000 notes. Each denomination will bear the signature of the new CBK Governor, Kamau Thugge, who took office in mid-June last year, along with Treasury Principal Secretary Chris Kiptoo.

“This is just the normal process of the CBK. The notes we have are getting old, and therefore we need to get new notes,” stated Dr. Thugge during a post-monetary policy meeting. He emphasised the urgency of the situation, particularly for the Sh1,000 notes, which are projected to face stockouts by August.

“The printing was being done by a German firm, and it is one of the best firms,” he added, without disclosing the firm's name or the cost of the printing.

New banknote features.

The switch to the German firm follows CBK’s decision to halt orders to De La Rue Kenya for at least 12 months, affecting the joint venture in which the Kenyan government holds a 40% stake. The newly printed notes, which will feature the year 2024 and enhanced security threads with colour-changing effects unique to each denomination, are set to replace the current series issued in 2019.

“All banknotes in circulation remain legal tender and will circulate alongside the released banknotes. The release of the banknotes will commence with Sh1,000, while other denominations will progressively follow in the coming months,” the CBK noted in its statement.

The new signatures on the notes symbolise a transition in leadership following the retirement of former CBK Governor Patrick Njoroge in mid-June last year.

As of the end of December 2023, CBK data indicated the total value of the currency in circulation was Sh340.59 billion, with Sh290.97 billion attributed to Sh1,000 notes.

The Sh500, Sh200, Sh100, and Sh50 denominations accounted for Sh16.11 billion, Sh11.58 billion, Sh6.04 billion, and Sh15.56 billion, respectively. This breakdown highlights the significant volume of high-denomination notes, with approximately 290.9 million Sh1,000 notes in circulation.