The government of President William Ruto is under scrutiny following reports that the Central Bank of Kenya (CBK) has quietly entered into a Ksh14.2 billion deal with a German firm, Giesecke+Devrient Currency Technologies GmbH (G+D), to print Kenya’s new banknotes.
Image: CBK reportedly contracted a German firm to print new Kenyan banknotes. | Photo/Courtesy
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Controversy Over De La Rue Contract Violation
According to political commentator and MBA student Nelson Amenya, the new arrangement violates a non-compete clause that existed under the previous agreement with British firm De La Rue. The firm had been printing Kenyan banknotes until it closed its Nairobi plant in early 2023 after fulfilling its 2019-series contract.
“In doing so, they breached a non-compete clause in the existing contract with De La Rue, a move that could cost taxpayers billions,” Amenya claimed, drawing comparisons with the infamous Arror and Kimwarer dam scandal.
Was the Deal Political? Amenya Raises More Questions
Amenya also alleged the lucrative deal was part of a secret pact linked to the so-called “handshake” between President Ruto and opposition leader Raila Odinga. “Reports indicate it was a contract awarded to Raila Odinga for his handshake with Ruto,” he said without providing documented evidence.
CBK’s Justification for German Deal
The Central Bank of Kenya responded to public concerns, clarifying that the transition was necessary due to a critical shortage of Ksh1,000 notes and the exit of De La Rue. The bank explained that the decision was approved through a classified procurement process in line with global best practices for currency printing.
“Currency design and procurement are highly sensitive and often require confidentiality,” CBK stated. The Treasury reportedly guided CBK in opting for the secretive procurement route.
What’s New with the 2024 Banknotes?
The new notes—known as the 2024-series—retain the design of the 2019 banknotes but include updated security features and signatures of the current CBK Governor and the Principal Secretary to the National Treasury.
The printing contract with G+D is set to span five years, raising further questions about transparency and cost to taxpayers.
Background: De La Rue’s Exit
De La Rue Kenya, which had operated locally for decades, shut down its Nairobi-based operations in January 2023, citing lack of new contracts and rising operational costs. The company was previously responsible for producing all Kenyan banknotes under CBK directives.
Public Reactions and Political Undertones
As details of the secret currency deal emerge, political observers, including Amenya, have raised red flags about a lack of transparency and potential political motivations. The matter could attract parliamentary debate in the coming weeks as pressure mounts for CBK and Treasury officials to explain the classified procurement.
For more on Kenya’s monetary policy and CBK decisions, visit the CBK official website.
