Central Bank makes new decision on printing currency notes

juma chrispinus

April 12, 2018 9:20 AM

The new notes are not supposed to have people's portraits.

The Central bank of Kenya is set to appeal a decision by the High Court, which compelled it to start a fresh, the process of tendering for new currency printing exercise.

The tender, worth 10 billion a year, which was has been at the centre of a row between British firm De La Rue, and Swedish firm Crane AB since late last year.

In a notice filed at the Court of Appeal, CBK says it is dissatisfied with part of the judgment and intends to appeal. It will appeal the judgment in which Odunga declared the awarding of the tender to De La Rue on printing of the new currency null and void.

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On Monday this week, judge Odunga ruled that CBK should evaluate the bids afresh. In the case, activist Okiya Omtatah had gone to court to challenge the award of the multi-billion shilling contract to De La Rue, arguing they did not qualify for the 15 per cent margin of preference, because it is not a preferred supplier under the Kenyan law.

On January 8, the Public Procurement Administrative Review Board terminated the De La Rue contract after a week-long hearing in which Swedish firm, Crane AB accused the CBK of breaching the law in awarding a 15 per cent margin preference to De La Rue for having local shareholding.

The decision by the Central Bank therefore means that Kenyans will have to wait longer to get the new currency. The new currencies according to the law, are required not to have human portraits. Current notes carry either former Presidents Daniel Moi or Jomo Kenyatta.

juma chrispinus