Members of Parliament (MPs) on Wednesday, August 21, 2024, questioned the Central Bank (CBK) governor Kamau Thugge over the printing of new currency worth Ksh689 billion.

The Parliament Committee on Treasury and National Planning chaired by Molo MP Kimani Kuria ordered Thugge to explain the rationale behind the printing deal at a time when the country is struggling with revenue shortfalls.

“The National Assembly Departmental Committee on Finance and National Planning has asked the Central Bank of Kenya to avail detailed documents relating to the recent procurement of new currency valued at Ksh689 billion for scrutiny, and to help the committee confirm that the process followed due process,” a statement from Parliament read in part.

Thugge assured the committee members that the procurement of new banknotes by German firm, Giesecke+Devrient Currency Technologies GmbH (G+D) at €103,229,000 (about Ksh14.2b) at the current exchange rate was above board.

During the grilling session, Thugge indicated that the country was faced with a note stockout emergency, necessitating the urgent need to print more money.

“Chairperson, the classified procurement was undertaken to avert a stock-out crisis. The procurement process was conducted in accordance with the Public Procurement and Asset Disposal Act (PPADA) and with the approval of the National Security Council and the Cabinet.

“The contract was reviewed and approved by the Attorney General as required by law before execution by the parties,” Thugge said.

Pressed to give justification on why the governor had ordered the procurement of new currency in under five years, Thugge told the committee that the new deal was a reprieve for Kenyans because it is Ksh477 million cheaper.

CBK currency values

According to the Central Bank, notes worth Ksh689bn are set to be printed. They include 460 million notes in Ksh50 denomination, 690 million notes in Ksh100 denomination, 260 million notes in Ksh200 notes, and 170 million notes in Ksh500. The deal will also see 460 million notes printed in Ksh1,000 denomination.

The MPs also questioned Thugge on the unprecedented exit of Kenyan-based De La Rue, which stopped its operations in the country, leading to massive job losses and loss of business, especially for Kenya’s neighbouring countries, who previously relied on the firm for their currencies.

The new currency already in circulation in the Ksh1,000 denomination bears the signature of the Governor of the Central Bank of Kenya, Kamau Thugge, that of the Principal Secretary, National Treasury, Chris Kiptoo, the year of print (2024), and new security threads with colour changing effects that are specific to each denomination.