The Central Bank of Kenya (CBK) has announced that it has entered into a Ksh14.2 billion five-year contract with German firm Giesecke+Devrient Currency Technologies GmbH (G+D) to print Kenyan banknotes.
This means that all Kenyan currency will now be printed abroad, a strategic decision influenced by key developments and considerations.
Historically, Kenya’s currency was printed by UK firm De La Rue that operated a plant in Nairobi. The Kenyan government acquired a 40% stake in De La Rue Kenya EPZ Limited, in a venture that saw the production of the 2019 series of Kenyan banknotes.
In January 2023, De La Rue announced its exit from Kenya, citing a challenging economic environment. The closure followed a Ksh1 billion fine by the Kenya Revenue Authority (KRA), which significantly strained its finances. Rising operational costs, particularly those linked to mass layoffs, eventually led to the shutdown of its Nairobi plant.
De La Rue’s exit forced CBK to find a new currency printer to maintain a steady supply of banknotes. Several companies competed for the contract, including Germany’s Giesecke+Devrient Currency Technologies, Sweden’s Crane Currency, and France’s Oberthur Fiduciaire.
By mid-2023, CBK recognized that Kenya was facing the risk of running out of banknotes, particularly the KSh1,000 notes. This posed significant economic and security risks. To avoid a cash shortage, CBK swiftly sought a qualified company capable of printing enough money to meet the country’s demand.
Giesecke+Devrient (G+D), a well-established firm known for its expertise in secure currency printing, was chosen for the contract. The decision was based on G+D’s strong track record and its experience working with African countries like Nigeria and South Africa, providing advanced currency printing and security services.
CBK chose a classified procurement process to maintain confidentiality, in line with global security standards. The bank also followed the required government guidance and obtained approval before finalizing the deal.
For the Kshs 14.2 billion contract, Kenya will receive 60 million KSh 1,000 banknotes, 170 million KSh 500 banknotes, 260 million KSh 200 banknotes, 690 million KSh 100 banknotes, and 460 million KSh 50 banknotes.
The firm is responsible for the newly designed 2024-series banknotes, which feature enhanced security measures and improved durability. The new designs include updated features and security threads with color-changing effects, unique to each denomination.
The banknotes feature the signatures of the Governor of the Central Bank of Kenya, Dr. Kamau Thugge, and the Principal Secretary of the National Treasury, Dr. Chris Kiptoo.
They also showcase a 2024 print year and a new security thread with color-changing effects, unique to each denomination.
The thread known as the iridescent band displays ultraviolet (UV) fluorescence, providing an extra layer of security to protect against counterfeiting.
