NAIROBI, Kenya – The Senate has launched an investigation into the Central Bank of Kenya’s (CBK) award of a Sh14.5 billion tender for printing new currency notes, escalating scrutiny over a deal already under review by the National Assembly.
The inquiry follows a petition filed by Busia Senator Okiya Omtatah, who cited massive irregularities flagged in Auditor General Nancy Gathungu’s 2024 report.
The contract was awarded through direct procurement to German firm Giesecke+Devrient Currency Technologies (G+D).
According to Omtatah, CBK ignored key procurement safeguards, including the appointment of a special procurement committee, oversight by the Public Procurement Regulatory Authority (PPRA), and market assessments to justify costs.
“While CBK cited approvals from the National Security Council and other agencies, these explanations are unconvincing. CBK is not a national security organ under Article 239 of the Constitution,” he told senators.
The Senate Finance and Budget Committee, chaired by Mandera Senator Ali Roba, will determine whether the Treasury Cabinet Secretary authorised the classified procurement, whether the tender was properly listed under Section 90 of the Public Procurement and Asset Disposal Act, and if CBK submitted mandatory reports to oversight bodies.
The committee will also compare the controversial 2025 contract with a 2005 open tender, which awarded currency printing to De La Rue at a lower cost.
In her report, Auditor General Gathungu said CBK “did not fully comply with procurement laws,” warning that the process lacked transparency and denied regulators a chance to monitor the deal.
CBK Governor Kamau Thugge, defending the contract before MPs earlier this month, argued that urgency and the sensitivity of currency printing necessitated direct procurement.
He said CBK had to act fast to avoid a shortage of Sh1,000 notes, which could have destabilised the economy.
“In mid-2023, CBK determined that a shortage was looming. A stockout would have severely impacted price stability and the exchange rate,” Thugge said.
He added that the decision was cleared by the National Security Advisory Council, the Cabinet, the Treasury, and the Attorney General.
Under the Sh14.5 billion deal, G+D was contracted to print 2.04 billion new notes valued at Sh689 billion, including 460 million pieces of Sh50, 690 million of Sh100, 260 million of Sh200, 170 million of Sh500, and 460 million of Sh1,000 notes.
The Senate panel is expected to recommend reforms to strengthen accountability in classified procurements, ensure value for money, and safeguard public resources.
