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Senator Andrew Omtatah has called for the scrutiny of a Sh 14.5 billion national currency printing contract awarded by the Central Bank of Kenya (CBK) to German firm Giesecke+Devrient (G+D).
In a statement filed under Standing Order 53(1), Omtatah says serious constitutional and procurement queries have been raised after the Auditor-General flagged procedural irregularities.
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Audit report puts spotlight on procurement process
The audit report drew attention to several problems in how CBK handled the tender.
It pointed out that the bank failed to set up a special procurement committee, even though this is required when dealing with classified contracts under the Public Procurement Regulations of 2020.
It also observed that CBK did not carry out supplier vetting or a proper market assessment to show value for money.
Oversight was equally lacking, as the Public Procurement Regulatory Authority did not monitor the transaction, despite the law requiring its Director-General to do so.
The report further noted that CBK ignored key internal procedures. The bank did not prepare the necessary paperwork to justify the decision to treat the tender as classified, did not submit procurement reports to the Treasury or to regulators, and did not show how it selected the supplier.
The Auditor-General went on to question whether the deal was ever legitimately classified under the Public Procurement and Asset Disposal Act, raising suspicion that the secrecy may have been used to avoid open competition.
While the audit did not say that CBK’s entire governance system was weak, it did single out this particular contract as a serious exception.
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Omtatah’s parliamentary questions
On the back of these findings, Omtatah has asked the Senate’s Finance and Budget Committee to provide specific answers.
He wants clarity on whether CBK obtained the Treasury Cabinet Secretary’s approval to treat the contract as classified, and whether it appeared on the official list of classified procurements.
He is also seeking confirmation on whether the bank complied with all conditions under Regulation 84, including drawing up itemised costs, documenting the chosen procurement method, and appointing the special committee required.
In addition, he has demanded to know if CBK’s accounting officer submitted the necessary reports to both the Treasury and the PPRA, as the law dictates.
The senator is also challenging whether CBK misused Section 90(8) of the Act by wrongly classifying the tender and avoiding open bidding.
He has called for a comparison between this contract and the 2005 tender that was awarded through competitive bidding to British firm De La Rue, which at the time beat Giesecke+Devrient on cost.
Omtatah insists that the committee must examine both contracts in terms of transparency, competition and value for money, and explain how the current deal compares in price to past agreements.
Finally, he wants proposals for firm measures that will ensure accountability, prevent future abuse of classified procurement, and protect Kenya’s procurement system from misuse.
Contract details and CBK’s defence
Public reports show that the CBK contract with Giesecke+Devrient is structured as a five-year arrangement, covering the printing of about 2.04 billion banknotes.
These notes are expected to bear the 2024 print date and to come with updated security features.
CBK has defended the deal, stating that the National Security Council, the Cabinet and the Attorney General cleared the procurement.
The bank has argued that delays or lack of capacity in printing could have created a shortage of banknotes, and that this urgency justified the use of classified procedures.
The new contract comes after Britain’s De La Rue, which had printed Kenya’s currency for decades, shut down its local operations in 2023.
Media reports indicate that the contract covers the printing of 460 million Sh50 notes, 690 million Sh100 notes, 260 million Sh200 notes, 170 million Sh500 notes, and 460 million Sh1,000 notes, amounting to a total face value of Sh689 billion.
Omtatah maintains that a competitive process could have offered better value today. Whether that claim holds up to a detailed review is now one of the questions before the Senate.
Political live wire
The Senate’s involvement means that this case is no longer only about audit findings but is now a live political and constitutional issue.
If CBK and the Treasury fail to provide convincing explanations, the Senate may push for the contract to be renegotiated, reversed, or subjected to legal scrutiny.
The case will also test the strength of Kenya’s rules on classified procurement, a sensitive area that touches both national security and public finance.
How it is resolved could set a precedent, either reinforcing the system against abuse or opening the door for other public bodies to misuse secrecy provisions in major contracts.