Egg on the face of Kenyans who expected public participation on this new deal by Central Bank of Kenya. Kenyans have been here before, biggest scandals arose in these tender process, how De La Rue managed to dominate this business with government for over 10years brew one of the most intense scandals in history of Kenya.
The (CBK) recently awarded a contract to a German company to print new banknotes.
However, the details of this deal are being kept secret, which is raising concerns. Where public money is used, the public is entitled to ask for accountability. Such kinds of behavior by government and its agencies have cost Kenya to plunge into odious debt of which has salvaged the economic sustainability of the citizens.
Since independence, the British company De La Rue had a monopoly on printing Kenyan money.
In 2002, this monopoly was extended for another 10 years without any competition, which led to public anger.
Costly Interim Contracts with De La Rue
Between 2003 and 2006, CBK made several short-term deals with De La Rue to print money.
These deals ended up costing taxpayers Sh1.8 billion more than if they had used a new contract that went through a competitive bidding process.
Controversial Government Decisions
Now In 2006, De La Rue won a new contract to print 1.7 billion pieces of banknotes at a cost of Sh13.8 billion.
However, this contract was canceled in 2007 by then Finance Minister Amos Kimunya, who was pushing for a joint venture with De La Rue.
After canceling the 2006 contract, CBK placed several interim orders with De La Rue to print more banknotes.
For example, in 2009, CBK ordered 450 million pieces at a cost of Sh13 billion, and in 2010, they ordered another 483 million pieces at a cost of Sh14 billion.
Closure of De La Rue’s Kenyan Operations
De La Rue closed its Kenyan operations last year.
The Kenyan government had bought a 40% stake in De La Rue’s local operations, but the deal was criticized because the technology at the plant was outdated.
Now, The CBK has announced updates to Kenyan banknotes, including new Sh50, 100, 200, 500, and 1,000 notes with updated security features.
The Sh1,000 notes will be released first, with other denominations to follow.
1. Why does is have to include Principal Secretary Dr. Chris Kiptoo
2. Was there any public participation
3. Why secrecy since the CBK to has not disclosed all details of this contract, including the name of the German company, the cost of the deal, and how the company was selected.
The opacity of this deal echoes previous instances where money printing contracts were surrounded by scandal.
KenyanHour 