MPs grill CBK boss Kamau Thugge over Ksh.14.2B currency printing tender

The National Assembly Committee on Finance has started investigations into how the national government entered into a restricted tender worth Ksh.14.2 billion.

The multi-billion-shilling contract with Giesecke+Devrient Currency Technologies is for the printing and replenishing of bank notes for a five-year period.

Members of the MP Kuria Kimani-led committee put Central Bank of Kenya (CBK) Governor Kamau Thugge to task to explain value for money that will be gained from the contract.

Thugge explained to members of the committee that the government had resorted to the measure following the exit of De La Rue.

“Following the exit of De La Rue, the country was at risk of stock out of bank notes, with grave economic and national security implications. We knew the country needed this stock up process and that’s why we went through all legal processes in the tendering process,” submitted Thugge.

“I would also want to clarify that the firm is not printing new currency but replenishing the existing ones that are old and worn out.”

However, committee members wondered how De La Rue could exit the Kenyan market without the knowledge of the government considering it held a 40% share in the company.

“You can’t say it was De La Rue’s decision to leave the market, the government through the Treasury held a 40% stake in the company. De La Rue can’t leave without the government being in the know,” Charged Eldas MP Adan Keynan.

“Who really owns this company? How did we settle on it? How many other jobs have they done? What was the real reason it was contracted?”

Committee Chair Kimani on his part posed: “When you handpick a firm, how do you ascertain the cost of the contract? Also, on printing of these notes, will the existing ones continue being legal tender?”

Baringo North MP Joseph Makilap queried the exact number of notes that had been worn out to the extent that CBK needed Ksh.14.2 billion to replenish them.

Thugge however insisted they followed all the legal requirements getting consent from the Treasury, the Attorney General’s office, and even the Cabinet to proceed with the tendering process.

“We will avail the documents. We have nothing to hide. We applied for the classified procurement process through Treasury, which then went to the National Security Council, later the Cabinet which analyzed and issued a directive to Treasury that we (CBK) proceed with procurement,” he said.