MPs demand documents on Sh14 billion CBK banknotes deal with German firm
By Maureen Kinyanjui |
The CBK has confirmed that the new 1,000-shilling banknotes with enhanced security features are already in circulation as part of their ongoing efforts to maintain currency integrity and security in Kenya.
The National Assembly has demanded certified documents detailing how the Central Bank of Kenya (CBK) awarded a five-year, Sh14.10 billion ($109,422,740) contract to Germany's Giesecke + Devrient Currency Technologies GmbH (G+D) for printing Kenya's new currency notes.
The Finance and National Planning Committee of the National Assembly has requested these documents ahead of a meeting scheduled with CBK Governor Kamau Thugge on Thursday this week.
Keep reading
In a letter dated August 30, 2024, National Assembly Senior Deputy Clerk Jeremiah Ndombi, acting on behalf of House Clerk Samuel Njoroge, informed Thugge about the committee's need for paperwork regarding the procurement process and contract details.
The CBK Governor had previously informed the committee that G+D was selected through a classified procurement process due to concerns over potential currency shortages, which posed significant economic and security risks for Kenya.
The decision to seek a new currency printer arose after British firm De La Rue closed its printing operations in Nairobi's Ruaraka area in early 2023, citing a lack of new orders.
"The closure of De La Rue's Nairobi plant, in which the government holds a 40 per cent stake, prompted the need to secure a new printing partner," Thugge explained to the committee.
Greenlight
He said the contract was okayed by the highest security and constitutional organs including the National Security Council and the office of the Attorney General.
"We will avail the documents. We have nothing to hide. We applied for the classified procurement process through the Treasury, which then went to the National Security Council, later the Cabinet which analysed and issued a directive to Treasury that we (CBK) proceed with procurement," the Governor said.
According to CBK, the five-year contract with G+D will supply Kenya with 2.04 billion banknotes to replace worn-out, torn, or destroyed currency.
Paul Wanyeki, Director for Currency at CBK, had stated that over the contract period, Kenya will receive various denominations including 460 million 50-shilling notes, 690 million 100-shilling notes, 260 million 200-shilling notes, 170 million 500-shilling notes, and 460 million 1,000-shilling notes, all equipped with enhanced security features.
The committee has specifically requested documents such as the communication from De La Rue Kenya Limited notifying CBK of its operational closure, a report on the status of currency notes presented to the CBK board, certified copies of CBK board meeting minutes authorizing the procurement process, and a signed copy of the five-year contract with G+D.
"You are invited to provide these documents and address any queries raised by members during the upcoming committee meeting," the summons to Thugge concluded.
The CBK has confirmed that the new 1,000-shilling banknotes with enhanced security features are already in circulation as part of their ongoing efforts to maintain currency integrity and security in Kenya.
Reader comments
Follow Us and Stay Connected!
We'd love for you to join our community and stay updated with our latest stories and updates. Follow us on our social media channels and be part of the conversation!
Let's stay connected and keep the dialogue going!
Latest News For You
