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Kenya’s currency printing saga has taken a dramatic turn as the country welcomes a new currency printer, following the abrupt and controversial exit of De La Rue in early 2023.  Despite the government’s significant investment of Sh660 million for a 40 per cent stake in De La Rue Kenya EPZ Limited in 2019, the British firm pulled out after the state denied the firm work.

De La Rue exited the scene in March last year after the firm was informed by the Central Bank of Kenya (CBK) that the State will not print new banknotes for the next 12 months. Over 300 workers were laid off.

But in a turn of events, an unnamed German printer has been outsourced, and is set to produce new Sh50, Sh100, Sh200, Sh500, and Sh1,000 notes slightly above the 12 months after De La Rue’s exit. Central Bank of Kenya (CBK) says new notes will replace the old ones and avert potential stockouts.

According to Governor Kamau Thugge, the changes will affect Sh50, Sh100, Sh200, Sh500, and Sh1,000 notes which will now have the governor’s signature and that of the Treasury Principal Secretary, in a new development that will see the old notes gradually removed from circulation.

“The notes we have are getting old and therefore we need to get new notes. The reason why we started with Sh1,000 notes is that we are projecting there could be a stockout of those notes in July or August and so it was really necessary that we get new notes as quickly as possible,” he explained.

At the time of their departure, De La Rue had secured a money printing tender with the CBK and had invested Sh286 million to enhance their manufacturing capabilities. This investment was part of a multi-billion-shilling programme aimed at establishing their Kenyan plant as a regional hub for East Africa.

Printed banknote

The British banknote manufacturer and security printing experts had also invested in a new varnishing line at the Kenya factory.  This addition, which enhances the durability of printed banknotes, provided more operational flexibility, aligning the Kenyan facility with their other sites.

The Nairobi factory, which also produced chequebooks and a variety of other security documents, was the first in the region to be accredited for Visa Card and MasterCard personalisation. It had recently invested in the latest chip and pin smart technology, enhancing its capabilities.