CBK Directed to Re-evaluate Four Tenders For Printing New Currency

The Central Bank of Kenya (CBK)  has been directed to undertake a fresh evaluation of all the tenders submitted to it for printing the new generation currency.

The Public Procurement Administrative Review Board (PPARB) cancelled the multi-billion shilling contract that had been awarded to De La Rue International Limited, which is registered in the UK.

CBK has 14 days to re-evaluate the four bidders who participated in the process among them German Giesecke & Devrient, Crane Currency and Oberthur Fiduciaire of France.

In its ruling on Monday, the PPARB ruled that CBK had violated the law by applying a 15 per cent margin preference meant for local firms to favour De La Rue.

“A declaration be and is hereby issued declaring that the 2nd Respondent herein De La Rue International Limited was unlawfully awarded the tender for the printing and supply of the new design Kenya currency and bank notes,” read the ruling in part.

A Swedish company, Crane AB, which offered the lowest bid protested the award and accused CBK of flouting the law and lacking transparency.

Last year, the Kenyan High Court Judge Chacha Mwita declined to stop the tendering process in a case which De LA Rue and De LA Rue Kenya EPZ Ltd had challenged the regulator’s decision to invite tenders from foreign firms to print the new design Kenyan currency.

CBK said it will issue the new generation currency by the end of the second quarter of this year.