Business & Money
Central Bank of Kenya Appoints New Currency Printer After De La Rue Exit
As Kenya progresses towards its Vision 2030 goals, the selection of the new German firm underscores CBK’s commitment to protecting national interests and adopting advanced technology in currency production, setting a precedent for future improvements in Kenya’s financial infrastructure
: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:
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
Business & Money
Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:
KCB Bank Kenya Limited
Total Assets: KSh 1.425 trillion
Market Share: 17.4%
Equity Bank Kenya Limited
Total Assets: KSh 1.004 trillion
Market Share: 12.2%
NCBA Bank Kenya PLC
Total Assets: KSh 661.7 billion
Market Share: 9.2%
Co-operative Bank of Kenya
Total Assets: KSh 624.3 billion
Market Share: 8.8%
Absa Bank Kenya PLC
Total Assets: KSh 520.3 billion
Market Share: 6.6%
Standard Chartered Bank Kenya
Total Assets: KSh 429.3 billion
Market Share: 5.9%
Stanbic Bank Kenya
Total Assets: KSh 449.6 billion
Market Share: 5.8%
I&M Bank Limited
Total Assets: KSh 405.6 billion
Market Share: 5.4%
Diamond Trust Bank Kenya
Total Assets: KSh 399.6 billion
Market Share: 5.3%
Bank of Baroda (Kenya) Limited
Total Assets: KSh 201.9 billion
Market Share: 2.8%
These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance
: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.
Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.
This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.
It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.
In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.
His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.
She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.
Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.
Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.
The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.
Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.
The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.
While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.
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