The National Assembly’s Finance Committee has begun probing the national government’s decision to award a restricted tender worth Ksh.14.2 billion for printing and replenishing banknotes. The five-year contract was awarded to Giesecke+Devrient Currency Technologies.
Chaired by MP Kuria Kimani, the committee pressed Central Bank of Kenya (CBK) Governor Kamau Thugge to justify the value of the contract. Thugge explained that the decision was prompted by the exit of De La Rue, a major player in the currency printing industry, which left the country facing a shortage of banknotes.
“The departure of De La Rue posed a significant risk of running out of banknotes, which could have had serious economic and security consequences,” Thugge said. He clarified that the contract is not for printing new currency but for replacing old and worn-out notes.
Despite this explanation, committee members expressed concerns over how De La Rue could leave the Kenyan market without government awareness, considering the government held a 40% stake in the company. Eldas MP Adan Keynan questioned how the company could exit without the government’s involvement, adding, “Who really owns this company? How did we decide on this firm, and what other jobs have they done?”
Committee Chair Kimani also questioned the method of awarding the contract, asking how costs were determined without a competitive bidding process. He sought clarification on whether the existing notes would remain legal tender after the replenishment.
Baringo North MP Joseph Makilap further inquired about the number of worn-out banknotes that necessitated such a large contract.
In response, Thugge maintained that all legal procedures were followed, including obtaining approval from the Treasury, the Attorney General, and the Cabinet before proceeding with the tendering process.