NAIROBI, KENYA, OCTOBER 13 — British security printing firm-De La Rue has retained the US$99.2 million (Ksh10 billion) annual tender for printing Kenya’s currency.
This follows a Court of Appeal ruling on Friday which reversed a previous decision by the High Court, which had nullified the tender after claims of collusion between the firm and the Central Bank of Kenya (CBK).
CBK had been accused of breaching the law by awarding the tender to De La Rue which includes a 15 per cent preferential treatment. The deal covers printing of Kenya’s new-look currency.
In a petition by activist Okiya Omtata filed in April, High Court Judge George Odunga had order CBK to re-examine the tender on grounds that the preferential treatment contravened the law, on the basis that the firm was not Kenyan owned.
The regulator together with De La Rue moved to the Court of Appeal to protest.
In the Friday ruling, the Court of Appeal judges dismissed the earlier decision with “no order as to costs in respect of the proceedings”, both in the High Court and the Appeal Court.
The decision was made by Justices Asike Makhandia, Erastus Githinji and Ole Kantai, giving De La Rue a green light to go ahead with printing of the country’s new-look currency.
In a statement following the ruling, De La Rue expressed satisfaction with the court decision, affirming its commitment in continued investment in Kenya.
“De La Rue is delighted with the verdict this morning. We have maintained throughout the process that the CBK had run a proper, fair and transparent procurement, and the court has today confirmed that view, as well as dismissing baseless accusations of collusion out of hand,” the firm said in the statement by Marketing Director Robin Mackenzie.
“We are also delighted that the court recognised the proper application of local preference,” Mackenzie said.
He said De La Rue Kenya will continue to support the CBK and actively participate in growing the economy of Kenya.
The firm has invested for over 25 years in Kenya employing around 300 people directly, with an extended workforce of around 3,000.
It puts its annual contribution to the local economy at US$12.4 million (about Ksh1.25 billion).
The firm is currently investing US$2.9 million (KSh286 million) in the expansion of its site in Nairobi, the country’s capital, a move it says will strengthen and underpin local operations.
READ:De La Rue invests Ksh286 million in expansion of Kenya operations
“This is part of a long term investment of Ksh1.4billion (US$13.9 million) to upgrade the site to become a regional hub for East Africa and the wider continent and a Global Centre of Excellence for De La Rue,” the firm said.
In 2014, the British company won a more-like similar court battle for a lucrative tender to print currency for the Kenyan government.
The High Court then gave CBK a go ahead to enter into a contract with De La Rue, throwing out a petition that was seeking to quash a deal the two parties signed in 2006.
