CBK Unveils KSh 14 Billion Banknote Printing Deal, Names The New Money Maker

• CBK initiated the new banknote printing process after the closure of De La Rue's Nairobi plant in January 2023
• CBK explained that the printing of new banknotes is necessary to replenish old and worn currency notes that are periodically withdrawn from circulation
• CBK initiated a classified procurement process that identified Giesecke+Devrient Currency Technologies GmbH (G+D) to print banknotes and prevent a stockout
• The 2024-series banknotes will feature the signatures of CBK Governor Kamau Thugge and Treasury PS Chris Kiptoo, though the design will largely remain the same as the 2019 series

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

The Central Bank of Kenya (CBK) has made public information relating to the tendering process and the reasons behind the printing of new banknotes.

Why is Central Bank of Kenya printing banknotes?

In a presentation to parliament seen by TUKO.co.ke, the CBK explained that it determined that the country was at risk of a stockout of currency notes, especially the KSh 1000 banknotes, around mid-2023.

"Over the course of time, currency notes get old, get torn, and are withdrawn from circulation. This means money supply in the economy reduces over time. It is, therefore, critical for the money to be periodically replenished," CBK said.

CBK noted that the cost of the banknotes was €103,229,000 (US$109,422,740 using the exchange rate at the date of contract signing) (about KSh 14.08 billion) and that the contract for the 2019-series banknotes was worth US$112 856,000 (about KSh 14.5 billion).

Who is printing Kenyan currency notes?

Following the closure of De La Rue's Nairobi plant in January 2023 after fulfilling its contract for the 2019-series banknotes, CBK initiated a classified procurement process, as guided by National Treasury circular No.16/2016, to secure a new banknote printer and prevent a stockout.

"CBK gathered relevant data from the various companies’ publicly disclosed information, as well as from other sources confidentially. Through this process, Giesecke+Devrient Currency Technologies GmbH (G+D), a reputable German banknote printing company was identified," CBK presentation read in part.

Since 1966, Kenyan banknotes have been printed by De La Rue International (DLR) or its predecessors, Thomas De La Rue & Company Limited (TDR) and Bradbury & Wilkinson of the United Kingdom, which was taken over by TDR in 1986.

In October 1992, DLR established a factory in Ruaraka, Nairobi county, where it began printing Kenyan banknotes.

The government of Kenya acquired a 40% stake in De La Rue Kenya EPZ Limited in 2017, and this joint venture printed the 2019 series of Kenyan banknotes until the plant's closure in January 2023.

Features of new Kenyan currency notes

The CBK announced that the new Kenya shilling banknotes will bear the signatures of the CBK governor Kamau Thugge and Treasury PS Chris Kiptoo.

Speaking in a press briefing on Wednesday, August 7, after the Monetary Policy Committee (MPC) meeting lowered the base lending rate, Thugge emphasised the changes are normal processes of the Central Bank.

He, however, told parliament that the design of the 2024-series banknotes is largely the same as the 2019 series.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.