British currency printer De La Rue has reported a 58 percent drop in profit for the six months to September 2022 in its Kenyan subsidiary.
In it’s financial report, the UK firm reported a Ksh 74 million profit, down from Ksh 177.5 million the same period last year.
The drop has been attributed to the general decline in the parent’s earnings, amind a reduced demand for bank notes globally.
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As such, De La Rue, noted that its customers have been using up the stock of banknotes built up during the COVID-19 pandemic.
“We witnessed a post-Covid-19 lull in demand, with banknote volumes significantly down, a trend that was seen across the banknote printing market,” said De La Rue Plc.
The UK firm’s Kenyan subsidiary located in Ruaraka produces banknotes circulated in more than 30 countries and other security documents such as passports and bank cheques.
In July 2016, the government acquired a 40 per cent stake in the currency printing firm at a cost of Ksh 754 million.
“De La Rue is delighted to have extended our longstanding relationship with the Government of Kenya into an ever closer partnership
“The joint venture will secure our position as a supply hub of currency and security solutions for the largest economy in East Africa and for the region ensuring a continuing and stable supply of technically advanced currency,” Martin Sutherland, Chief Executive Officer of De La Rue said.
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Other countries who have huge stakes in De La Rue’s local units include Sir Lanka with a 60 percent stake, Portugal with 25 percent and Nigeria with a controlling 77 percent.
Others are Switzerland with 25 percent while UK has a 25 percent through its Central Bank.