Replacement of Kenya’s presidents’ image on notes begins

Business-Daily

The Central Bank of Kenya (CBK) has started the process of replacing the images of former presidents on the country’s currency in what will be the first competitive international tender for bank notes and coins.

CBK is seeking a shortlist of currency printers through a tender that could see United Kingdom firm De La Rue lose its exclusive cash printing rights.

Kenya must replace all currency with completely new bank notes because the Constitution adopted in 2010 prohibits the use of a person’s portrait on the notes. Notes currently in circulation have the images of first president Jomo Kenyatta and his successor Daniel arap Moi.

The Cabinet had approved the design of new generation currency last August, and was working on a production date of 2015, prompting the international tender.

“The Central Bank of Kenya intends to prequalify candidates for production of banknote origination material and currency printing services to eligible banknote printers,” read the tender notice. CBK has not floated a successful competitive international tender since it was established in 1966.

De La Rue has had a stranglehold on the business except for the period between 1966 and 1985 when the country’s bank notes were printed by a UK company known as Bradbury Wilkinson, which was later acquired by De La Rue.

Towards the end of 2002, when all indications were that the regime of  President Daniel arap Moi was about to leave the scene, CBK moved quickly and signed a 10-year exclusive deal with De La Rue in the eleventh hour.

On March 14, 2003, Finance minister David Mwiraria cancelled the 10-year exclusive currency printing contract and ordered an international tender.

When the Central Bank floated the tender in 2006, De La Rue won a three-year contract to print 1.7 billion pieces at a cost of $51 million (Sh4.4 billion).

The bank notes procured through the competitive process did not see the light of day after the Kibaki administration decided to take the route of buying shares in De La Rue’s Ruaraka-based subsidiary.

To date — and even after the new Constitution demanded new designs — De La Rue continues to exclusively print currency under opaquely-negotiated interim orders.