CBK had awarded the tender of printing of new-design Kenya currency to De La Rue which was to commence on Thursday, December 14. However the High Court temporarily suspended Central Banks’ award of the new currency printing tender after activist Okiya Omtatah filed a petition for the award to be declared invalid, null and void, arguing “it is laced with open fraud and contemptuous disregard for the rule of law”.
Central Bank of Kenya can now proceed with the printing of new-look currency after the Appeals Court on Friday held that the De La Rue tender was above board.
Odunga’s ruling following a suit by Activist Okiya Omtatah who argued that De La Rue did not qualify for the 15 per cent margin of preference, the basis on which it won the tender.
He said the award of the tender constituted a deliberate and contemptuous act of fraud on the public.
“To make matters worse, CBK deliberately ignored the conflict of interest in the fact that De La Rue International Limited, which won the tender to designed the new design Kenyan currency banknotes, after bidding a mere US$ 0.1, which was tantamount to offering a free service, and pre-rigged the process by removing important high-tech security features required by the CBK, has been awarded the tender to print and supply the same,” he said.
The CBK had appealed the cancellation of the Sh 10 million annual contract. Justice George Odunga on April 12 quashed the tender saying it was awarded unlawfully.
According to CBK estimates, the replacement of the old currency notes will cost Sh 18 billion.
The Constitution-compliant new generation bank notes will be in 50, 100, 200, 500 and 1,000 shilling denominations.
Their introduction will be followed by phased withdrawal of the old generation notes.
Article 231(4) of the Constitution outlaws currency bearing portraits and images of individuals.
However, such features remain on notes and coins currently in circulation after CBK missed the planned August 2015 deadline in violation of the clause.
The activist argued that the British firm was not a preferred local supplier as it was not registered in Kenya as such.
On January 12, the Public Procurement Administrative Review Board (PPARB) cancelled the tender saying CBK erred by applying the 15 per cent margin preference.
Swedish firm Crane AB was the least evaluated in price score during the bidding process.
Other firms interested in the lucrative contract for printing new notes included Giesecke and Devrient (German), and Oberthur Fiduciaire of France.
Crane AB filed the case before the board and accused CBK of flouting the law and lacking transparency in awarding the lucrative deal to De La Rue International Ltd.
The PPARB and the court on both occasions directed the CBK to undertake a fresh evaluation of all tenders submitted by all the bidders.
The CBK, however, challenged the decision at the Appeals Court leading to the Friday’s ruling.
The bank argued that De La Rue was locally registered but only sub-contracted its affiliate De La Rue Kenya for in the printing contract.
It also said the Crane AB filed the case outside the 14 day period stipulated by law and that the board did not have jurisdiction to hear the matter.
De La Rue, in a statement, welcomed the Appeals Court ruling saying it was delighted with the verdict.
“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,” marketing director Robin Mackenzie said in a statement.