Setback as De La Rue loses Kenya's multi-billion currency printing suit

david nganga

April 10, 2018 2:09 PM

The move will now delay the printing of Kenya's new-look currency

The printing of Kenyas new-look currency has hit a setback after the High Court quashed a past bidding process awarded to British security printing firm De La Rue International.

While delivering the judgement, Justice George Odunga threw the ball back to the Central Bank of Kenya (CBK) which will be required to evaluate the bids afresh.

Odunga's judgement followed a case filed by activist Okiya Omtatah challenging the award of the Sh10 billion-a-year contract on the basis that the firm did not qualify for the 15 per cent margin of preference because it is not a preferred supplier under Kenyan law.

The Public Procurement Administrative Review Board (PPARB) had on January 8 cancelled the De La Rue contract stating that CBK had awarded it unlawfully.

Fresh evaluation

The Central Bank was directed to make a fresh evaluation of all the tenders submitted to it within 14 days prompting the lender to challenge the decision in court.

CBK has been in a hurry to award the contract in order to comply with the constitutional requirement to remove personalities’ images from the notes.

Swedish firm Crane AB had separately filed an appeal at the High Court, faulting the PPARB for failing to directly award it the tender as it was the lowest bidder. The company however, pulled out of the case, without offering any reasons for the decision.

Justice Odunga on Monday rejected the application for withdrawal seeing that it was made long after the case had been filed and heard. He directed the Swiss firm to pay the cost of the suit.

david nganga