Central Bank of Kenya Appoints New Currency Printer After De La Rue Exit

:Central Bank of Kenya Appoints Giesecke+Devrient for Currency Printing: A Strategic Shift Towards Modernization

   By Charles Wachira

In a strategic move to secure the integrity and production of the national currency, the Central Bank of Kenya (CBK) on August seven announced  it had selected  Germany’s Giesecke+Devrient Currency Technologies GmbH (G+D),a new firm,to print banknotes following the conclusion of its contract with De La Rue, a British currency and security printing company.

Background: Since 1996, De La Rue has been the primary printer of Kenya’s banknotes, a role pivotal to maintaining the country’s currency supply. However, as the tenure of their contract neared its end in 2023, CBK sought alternatives due to stalled renewal discussions.

Government Stake in De La Rue: Notably, the Kenyan government has held a stake in De La Rue through the Central Bank of Kenya’s investment. In 2009, CBK acquired a 40% share in the company, a move significant for both economic and strategic reasons. The investment, costing approximately KSh 3.8 billion (USD 30 million) at the time, aimed to secure a say in the operations and ensure quality control over the country’s currency production. This stake allowed CBK to influence decision-making processes and maintain close oversight of currency production.

Transition and Selection Process: In early 2023, CBK initiated a competitive bidding process to identify a successor to De La Rue. This process, overseen by CBK’s procurement board, attracted bids from several international currency printers with robust security features and technological advancements.

Following a thorough evaluation based on technical capabilities, security measures, pricing, and production capacity, CBK announced its decision to award the contract to a German firm, which was not publicly disclosed. CBK Chief, Kamau Thugge, confirmed that the new firm demonstrated superior technological capabilities in currency design and anti-counterfeiting measures, ensuring the continued security and quality of Kenya’s banknotes.

Key Figures and Dates:

• Commencement of Contract Negotiations: January 2023
• Contract Award Announcement: June 2023
• Transition Period and Training: July – December 2023
• Official Start of Printing Operations: January 2024

Reasons for Selection: The German firm’s advanced technological capabilities and stringent security protocols were key factors in its selection. This choice aligns with CBK’s goal to enhance the security and durability of Kenya’s banknotes, addressing evolving global security challenges.

Impact and Future Outlook: The transition from De La Rue to the German firm represents a critical shift for CBK, reinforcing its commitment to modernising currency production while ensuring the highest standards of security. With this new partnership, CBK aims to bolster public confidence in the integrity of Kenya’s currency amidst a dynamic global financial landscape.

Conclusion: As Kenya advances towards its economic growth and stability goals outlined in Vision 2030, the selection of the new German firm highlights CBK’s dedication to safeguarding national interests and embracing technological advancements in currency production. This successful transition sets a new precedent for future collaborations in enhancing Kenya’s financial infrastructure.

Keywords:Currency Printing:De La Rue Contract:Technological Advancements: Government Stake:Transition Process: