Senate Launches Probe into Sh14.5bn Currency Printing Deal with German Firm
The Senate has launched a new inquiry into the Central Bank of Kenya’s (CBK) award of a Sh14.5 billion currency printing contract to German firm Giesecke+Devrient Currency Technologies (G+D), as the deal faces scrutiny in the National Assembly.
The probe was triggered by a petition from Busia Senator Okiya Omtatah who cited major irregularities in Auditor General Nancy Gathungu’s 2024 report. He argued that CBK bypassed key procurement safeguards including the appointment of a special procurement committee, oversight by the Public Procurement Regulatory Authority (PPRA) and cost justification through market analysis.
“CBK relied on approvals from the National Security Council and other agencies but these explanations are not enough. CBK is not a national security organ under Article 239 of the Constitution,” Omtatah told the Senate.
The Senate Finance and Budget Committee chaired by Mandera Senator Ali Roba will investigate whether the Treasury Cabinet Secretary authorised the classified procurement, whether the tender was lawfully listed under Section 90 of the Public Procurement and Asset Disposal Act and if CBK filed mandatory reports with oversight institutions.
The committee will also compare the 2025 contract with a 2005 open tender which awarded currency printing to De La Rue at a lower cost.
In her audit, Gathungu said CBK “did not comply fully with procurement laws” and that the direct award lacked transparency and denied regulators the opportunity to monitor the transaction.
CBK Governor Kamau Thugge defended the deal before MPs last month saying it was necessary to avert a Sh1,000 note shortage that could have destabilised the economy. He said by mid 2023 CBK had projected a shortage and opted for direct procurement due to the urgency and sensitivity of currency printing.
“The situation would have undermined price stability and the exchange rate. That’s why CBK sought clearance from the National Security Advisory Council, the Cabinet, the Treasury and the Attorney General before awarding the contract,” Thugge said.
Under the Sh14.5 billion deal G+D was contracted to print 2.04 billion new notes valued at Sh689 billion. The order included 460 million pieces of Sh50, 690 million of Sh100, 260 million of Sh200, 170 million of Sh500 and 460 million of Sh1,000 notes.Among others.
Also Read: Fresh Twist as Kioni Claims Gachagua Secretly Working With Ruto
Senate Launches Probe into Sh14.5bn Currency Printing Deal with German Firm