The Public Procurement and Administrative Review Board (PPARB), a statutory procurement body has overturned Central Bank of Kenya’s decision to award British currency printer, Dela Rue contract to exclusively print Kenya’s new design currency notes.
In a statement, the board cites wrongful application of the law by CBK. “Dela Rue was unlawfully awarded the tender for printing and supply of new design Kenya currency and that the bank notes and that the application of a 15% preference margin in its favour was unlawful”
The board has now annulled the tender and ordered CBK to conduct a fresh evaluation of all tenders submitted to it by all four bidders who participated in the tender process within a period of two weeks from today.
Dela Rue was awarded the tender on 30th November 2017 but the High Court in December temporarily suspended the award saying CBK had not “adhered to the constitution and the law & had no consideration for public interest in getting value for money.” The court further noted that the “Kenyan taxpayer will have to pay rates that are way above the market rates for printing currency banknotes.”
Following the decision by PPARB, the Central Bank of Kenya says it intends to proceed to the High Court of Kenya to appeal against this determination, as provided for in the law.
Late last year during a post MPC briefing, Central Bank of Kenya Governor Dr Patrick Njoroge said they plan to issue the new design currency in the second quarter of 2018 in accordance with the new Constitution.
Article 231(4) of the Constitution prohibits the use of portraits or images of individuals on currency stating that notes and coins should only bear images that symbolise an aspect of Kenya, meaning the current notes in circulation violate the constitution.