CBK to challenge De La Rue printing contract cancelation

CBK to challenge De La Rue printing contract cancelation

The Central Bank of Kenya (CBK) is set to appeal a decision overturning the award of a contract to De La Rue International to print the country’s new currency.

The Public Procurement and Administrative Review Board (PPARB) nullified the award of the contract on Monday, citing a breach of the procurement act.

This followed a week long hearing by the board following complaints raised by Swedish currency printing company Crane AB over the manner the contract was awarded.

In overturning the awarding of the contract, the banking regulator was asked to re-evaluate the other bids for the new look currency printing tender.

The Central Bank however maintains it followed due process in awarding De La Rue International the contract which also included a 15 percent margin preference to carry out part of the printing job locally.

“The Central Bank of Kenya intends to proceed to the High Court of Kenya to appeal against this determination, as provided for in the law,” the CBK said in a statement.

Other companies shortlisted for the tender were Giesecke & Devrient from Germany and Oberthur Fiduciaire of France.

Kenya has over the past eight years delayed in issuing a newly designed currency as the constitution prohibits the use of portraits or images of individuals.

Last week the Central Bank had defended the award for the tender arguing that part of the printing job would be done at De La Rue’s Kenyan facility which is 40 percent owned by the government.

Crane AB through its lawyer James Singh however accused the CBK of lack of transparency in the tendering process adding that taxpayers could lose money as the tender was not awarded to the lowest bidder.

The Central Bank had late last year indicated that the new currency would be in circulation by mid 2018.

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