Kenya, June 2 -- The Government of Kenya has made a secret change to our currency design and is now printing our money in Germany without telling the public or getting their input.
But that's not the worst part. They broke a contract with De La Rue, a company that used to print our money, which could end up costing taxpayers billions of shillings, similar to the Arror and Kimwarer dam scandal.
Reports say this new printing contract was given to Raila Odinga as part of a deal with President Ruto.
In late 2024 and early 2025, the Central Bank of Kenya (CBK) moved its banknote printing to a German company, ending a long relationship with De La Rue.
The new banknotes for 2024, starting with the KES 1,000 note, look similar to the old ones but have new security features and the signatures of Governor Kamau Thugge and Treasury PS Chris Kiptoo.
These new notes will be used alongside the old ones to make sure there's no disruption. They are being printed abroad by Giesecke+Devrient Currency Technologies GmbH (G+D) under a secret contract worth around KES 14.2 billion (approximately USD 109 million).
In August 2024, CBK announced that a German company would print Kenya's new banknotes, but only later did people find out it was G+D, a well-known security printer.
This decision was made through a classified tender, supposedly to avoid risks as the existing money stocks were running low by mid-2024.
The Parliament's Finance and National Planning Committee asked Governor Thugge to explain why they didn't reveal the identity of the German printer, how much the printing would cost, or how they chose the company.
MPs were particularly worried about the lack of competitive bidding and transparency in pricing. De La Rue's Kenyan office stopped its operations in March 2023 due to decreased global demand for banknotes.
This closure made De La Rue spend £15.1 million (about KES 2.48 billion) to shut down their Nairobi printing facilities, ending their presence in Kenya.
Historically, contracts gave De La Rue the exclusive right to print our money, and there was a ten-year agreement approved by the Cabinet in September 2011, which would have ended in September 2021.
After that time, especially after De La Rue closed in early 2023, there was no valid reason for the CBK not to find other printers.
So, there's no proof that hiring G+D in 2024 broke any binding rules, except for the secret deals. The G+D contract is worth about KES 14.2 billion over five years, which is around USD 109 million.
For context, De La Rue had offered USD 112 million (around KES 14 billion) to print the 2019 series, showing similar pricing but without the benefits that come from local investments in Kenya (this is a crucial issue).
Redirecting about KES 14.2 billion to foreign printers means lost income and job opportunities in Kenya. Many deals during the Kasongo regime are like this, leading to lost chances for job creation and giving room for corruption, often benefiting politicians who make secret deals.
This also takes away any benefits that a local printer could have given if De La Rue's Kenyan office had continued operating. A secret contract without public or parliamentary disclosure has raised concerns about fairness, equity, and getting good value for our money.
MPs are demanding that CBK provide all reports and details about the contracts and costs. So far, they have not followed these requests, raising legal issues under Article 227 of the Constitution, which requires transparent public procurement.
CBK is setting a dangerous example for future contracts that could weaken Kenya's ability to print money itself. Without a local printing facility, Kenya might always rely on foreign companies for currency production, which poses risks to our national security and sovereignty.
Only a few African countries have their own money printing facilities. Only eight countries on the continent have state-owned or controlled printing plants: Algeria, DRC, Egypt, Morocco, Nigeria, South Africa, Sudan, and Zimbabwe.
Published by HT Digital Content Services with permission from Bana Kenya.