Central Bank of Kenya (CBK) Governor Kamau Thugge has been summoned by Parliament to clarify details regarding a contract with an undisclosed German firm for printing new bank notes.
The National Assembly’s Finance and National Planning Committee, led by Molo MP Kuria Kimani, is seeking clarity on the firm’s identity, the tendering process, and the financial implications for taxpayers.
The committee plans to meet with him on Tuesday, August 20 to discuss these pressing issues further.
“We will be meeting the Central Bank of Kenya Governor Kamau Thugge over reports that a firm has been identified to print new bank notes,” said Kimani.
The legislator asked the committee members to avail themselves on the set day, despite being on recess so as to delve into the details of the printing deal.
“I ask you members to be present on that day. I know we will be in recess, but we need to know the details of this currency printing deal.”
Also Read: CBK Makes Changes to Bank Notes
Thugee Announces New Printing Contract
This inquiry follows CBK’s announcement of the contract, which comes after the local subsidiary of British printer De La Rue was shut down due to a lack of orders.
In the press briefing on August 7, Thugge however did not disclose specifics about the tender process or the financial implications, raising concerns about transparency in the procurement of the new currency.
Additionally, the governor said that the printing of the new notes was necessary due to an expected shortage of notes particularly of the Ksh 1000 denomination.
“The notes we have are getting old and therefore we need to get new notes, the reason why we started with Ksh1,000 notes is because we are projecting there could be a stockout of those notes in July or August,” said Thugge.
“It was really necessary that we get new notes as quickly as possible,” he added.
Also Read: CBK Announces Tax Free Ksh50 Billion Infrastructure Bonds
Features of the New Bank Notes
The new notes will feature updated security threads and will bear the signatures of Thugge and Treasury Principal Secretary Chris Kiptoo.
Furthermore, CBK explained that the notes will be in circulation alongside the current ones with all denominations being affected by the changes.
“The Bank has made some changes to the denominations one hundred shillings (Sh100), two hundred shillings (Sh200), five hundred shillings (Sh500) and one thousand shillings (Sh1,000) currency banknotes,” read the statement.
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