Central Bank of Kenya Governor Patrick Njoroge addressed the press regarding the suspension of operations at De La Rue, the company that prints currency in Kenya.
Patrick Njoroge explains impact of De La Rue suspending operations in Kenya
CBK Governor addressed concerns of a shortage of banks notes following the suspension of De La Rue's operations in Kenya
In response to questions on Tuesday, January 31, Njoroge explained that the suspension would have an impact on jobs supported by the firm, which employs around 300 staff members and supports 3,000 indirectly.
However, Njoroge assured that the Central Bank of Kenya had no concerns about a shortage of currency as there is enough money in circulation.
He stated that the impact of the suspension would only be felt by those who work in Kenya supporting the industry.
“The impact it has is only to the extent that there are people that work in Kenya supporting the industry,” adding that: “But in terms of our currency needs, they are completely fulfilled.”
De La Rue, a British company specializing in the production of banknotes, passports, and other security documents, announced its decision to suspend currency printing operations due to low market demand.
The company also stated that it does not expect to receive any new orders from the Central Bank of Kenya for the next 12 months.
Despite the suspension of note-printing operations, De La Rue's joint venture with the Kenyan government, through which its operations in the country are conducted, remains active.
The company is still present in the Kenyan market and exploring other business opportunities.
This decision by De La Rue reflects the current economic climate in Kenya, which has been facing a slowdown in recent times and a decrease in demand for new banknotes.
The news of the suspension also came in the wake of a court ruling allowing the Kenya Revenue Authority to collect Sh1.1 billion in taxes owed by the company between 2013 and 2017.
De La Rue has been providing banknote production services to the Central Bank of Kenya for many years.
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