The Central Bank of Kenya (CBK) has kicked off a search for a firm to mint new coins, months after it signed a controversial Sh14.14 billion ($109,422,740) deal with a German company to print new notes to replace old ones and also avoid possible stock-outs.
The CBK said that it targets to recruit a coin-minting firm for a three-year contract through a competitive tender process.
“The scope will entail minting of coins as per the specifications to be provided and delivery to Central Bank of Kenya. The contract will be for a period of three years from 2025 to 2028,” the apex bank revealed, adding that it would invite bids for the contract this month.
The CBK in December 2018 released a batch of new coins minted in line with the 2010 Constitution, but did not disclose the company that printed them. The apex bank officially gazetted the new Sh1, Sh5, Sh10, and Sh20 coins as legal tender in 2018, replacing portraits of former presidents with images of a giraffe, a rhino, a lion, and an elephant, respectively.
Article 231(4) of the Constitution of Kenya states that the CBK may issue coins and notes that depict or symbolise Kenya, but not portraits of individuals.
The new disclosure by the CBK comes months after it signed a Sh14.2 billion ($109,422,740) five-year deal with Germany’s Giesecke+Devrient Currency Technologies GmbH (G+D) to print new notes, replacing Britain’s De La Rue.
CBK Governor Kamau Thugge told the National Assembly’s Finance and National Planning Committee in October that G+D was picked through a classified procurement process amid risks of a stock out of bank notes, which would have had grave economic and security implications for the country.
“The classified procurement process was therefore necessary to avert a stock-out crisis. The procurement was conducted in accordance with the Public Procurement and Disposal Act, and with the approval of the National Security Council and the Cabinet,” he told MPs.
“The cost of the banknotes was $109,422,740 using the exchange rate at the date of the contract signing. The contract for 2019 series banknotes was worth $112,856,000,” Dr Thugge added.
The new notes will bear the signature of Dr Thugge and Treasury Principal Secretary Chris Kiptoo. They will have the year of print as 2024 and will bear new security threads with colour-changing effects that are specific to each denomination. CBK said the rest of the features remain the same as those of the series issued in 2019.
CBK said that under the five-year contract with G+D, Kenya will receive 2.04 billion banknotes to replace those that are torn, worn out or destroyed.
Paul Wanyeki, the CBK’s director of currency, told the National Assembly’s Finance and National Planning Committee in October that the country would receive 460 million Sh50 and 690 million Sh100 banknotes over the five years.
He said Kenya would also receive 260 million Sh200 notes, 170 million Sh500, and 460 million Sh1,000 banknotes. The CBK said new Sh1,000 new banknotes with enhanced security features are already in circulation.
The CBK said that as of October 2024, there were about Sh330 billion banknotes in circulation in the country.
