Kenya’s Central Bank (CBK) signed a Sh14.2 billion ($109.4 million) deal with Giesecke+Devrient from Germany. This five-year deal will replace old notes and prevent shortages.
CBK Governor Kamau Thugge told the Finance and National Planning Committee that the German firm replaces De La Rue. He said the selection was confidential due to risks of shortages that could impact the economy and security.
Thugge clarified that the procurement followed the Public Procurement and Disposal Act, with approvals from the National Security Council and Cabinet. He noted the new notes cost $109.4 million, compared to $112.9 million for the 2019 series. The new notes will be signed by Thugge and Chris Kiptoo, dated 2024, and feature new security threads.
The 2019 series features remain the same. De La Rue, in which Kenya owns a 40% stake, closed its Kenyan operations in March 2023. The company spent Sh2.48 billion on layoffs, legal fees, and asset write-offs.
After De La Rue closed, CBK sought a new printer to avoid shortages, especially of Sh1,000 notes. The new deal, approved by the Cabinet and Attorney-General, will supply 2.04 billion notes over five years. It includes 460 million Sh50 notes, 690 million Sh100 notes, 260 million Sh200 notes, 170 million Sh500 notes, and 460 million Sh1,000 notes. New Sh1,000 notes are already in circulation.
CBK’s Paul Wanyeki also revealed that printing 1,000 banknotes now costs $53.50 (Sh6,842), up from $48 (Sh6,198) for the 2019 series. Thugge explained that aging banknotes reduce the money supply, making replenishment necessary. About Sh330 billion in banknotes are currently in circulation.
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