Kenya Government Contracts German Firm for New Banknote Printing.

The Central Bank of Kenya (CBK) has announced a significant overhaul of its currency, hiring a German firm to print new banknotes. The changes, mandated by the Constitution of Kenya and the Central Bank of Kenya Act, will affect denominations ranging from fifty shillings (KES 50), one hundred shillings (KES 100), two hundred shillings (KES 200), five hundred shillings (KES 500) and one thousand shillings (KES 1,000) currency banknotes.

During a post-Monetary Policy Committee (PMC) meeting address on Wednesday, CBK Governor Dr. Kamau Thugge stated that the firm was carefully selected and is believed to be “one of the best firms” for this critical task. The German firm is being onboarded following the exit of De La Rue, the previous banknote printer, which left the Kenyan market in 2023 due to low demand.

In June 2018, the High Court authorized the Central Bank of Kenya (CBK) to open tender bids for printing the new Kenyan currency. Judge Chacha Mwita dismissed an application by De La Rue Security Printing and another interested firm, which sought to block the CBK from opening the tender documents. Nevertheless, in his ruling, Justice Mwita required the printing companies to respond to CBK’s allegations of illegal acquisition of the tender documents.

In 2023, De La Rue made headlines in Kenya after spending approximately Ksh2.7 billion to scale down its operations. The funds were used to pay legal fees, lay off staff, and write off assets. At the time, the company employed 300 people and operated under the name De La Rue Kenya EPZ Limited.

The new banknotes will feature enhanced security measures, including color-changing threads specific to each denomination. This initiative aims to bolster the security of Kenya’s currency against counterfeiting.

The banknotes will bear the signatures of Dr. Kamau Thugge, Governor of the Central Bank of Kenya, Dr. Chris Kiptoo, Principal Secretary of the National Treasury, and the year of print, 2024. The CBK highlighted that these changes are in line with its mandate to issue currency and maintain the integrity of Kenya’s monetary system.

“The rest of the features remain the same as those of the series issued in 2019,” the CBK stated. Existing banknotes will continue to be legal tender and circulate alongside the new releases. The phased rollout will commence with the KES 1,000 note, followed by other denominations in the coming months.

This move comes as part of broader efforts by the CBK to enhance the security features of the national currency and ensure it meets international standards. The introduction of these new banknotes underscores Kenya’s commitment to maintaining a robust and secure financial system.

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