Auditor-General Nancy Gathungu flags CBK for irregularities in the Ksh 14.5 billion tender awarded to a German firm Giesecke+Devrient Currency Technologies GmbH (G+D) for printing new currency notes.
The report reveals that CBK failed to follow the required procurement regulations by not appointing a special committee, as mandated under the Public Procurement and Asset Disposal Regulations of 2020.
CBK Governor Kamau Thugge admitted that the procurement was conducted under the approval of the National Security Council and the Cabinet, citing risks of currency shortages, particularly of the Ksh 1,000 note but the absence of the special committee raises concerns about potential insider dealings and collusion.
General Nancy Gathungu flags CBK
The deal involves printing 2.04 billion banknotes over five years.
The agreement follows the exit of the British firm De La Rue which had previously handled the printing but closed its Nairobi operations due to a lack of orders.
De La Rue’s shutdown resulted in job losses and financial setbacks.
