Auditor General Nancy Gathungu has raised concerns over the Central Bank of Kenya’s (CBK) procurement of new currency printing services from German firm Giesecke+Devrient. The Sh14.5 billion tender was awarded through a classified direct procurement process, bypassing standard procurement regulations.
CBK contracted the firm to print 2.04 billion currency notes across various denominations, with a total monetary value of Sh689 billion. However, Gathungu’s report, presented to Parliament, highlighted non-compliance with the Public Procurement and Asset Disposal Regulations, 2020, noting that a special committee and regulatory oversight were not involved as required.
CBK Governor Kamau Thugge defended the decision, stating it was approved by the National Security Council and Cabinet due to a prior shortage of banknotes, citing security protocols often used in other countries. MPs are currently probing the process to determine if procurement laws were properly adhered to.
