Central Bank of Kenya is keeping its cards close to the chest on when it will release new currency notes.
How small businesses can improve chance of accessing bank loan A court ruling last week freed the banking sector regulator and the firm that won the printing tender, De La Rue, to go ahead with the Sh10 billion project of giving Kenyans new-look currency notes. It is expected that the process could take up to six months, with the CBK also reluctant to reveal the designs. The excitement around the new currency led to some artworks circulating online, which were however swiftly disowned by the bank. The judgement of the Court of Appeal clears the way for CBK to proceed with the processes it had put in place for printing and supply of new generation currency. “This legal challenge was the final hurdle that was stopping CBK from issuing the new generation bank notes. CBK will now reassess the timeline for issuing these bank notes, and will proceed with all due haste,” CBK Governor Patrick Njoroge said in a statement. The ruling gave CBK currency for being above board in its dealings with the British firm having been wounded by allegations of favouring De La Rue. The company, which prints over 150 national currencies as well as UK passports, has been reducing its paper production as part of cost-saving over the next few years to bring production into line with falling demand for paper notes.
E-commerce picks up in Kenya at Sh1 trillion mark In late 2015 the firm even underwent a restructuring effort to cut down on units and staff numbers. In Kenya the firm operates from its Ruaraka plant from where it serves the region including Rwanda, Tanzania, South Sudan, Sudan Ethiopia, Somalia and Uganda. But even as CBK and De la Rue emerge from the high-octane court battles with rivals and activists, the real test of changing the currency is in managing the emergence of fake money. In the past one month alone, authorities have nabbed several people including foreigners involved in fake foreign currency rackets worth billions of shillings. A Nigerian national, Henry Omoaka was nabbed at Malaika Apartments in South B with fake currency of $251,400 (Sh25.3 million). A Kenyan, Anthony Mwangangi, and Chadians Abdalla Tamba and his son Abdoulaye were nabbed with Sh1 billion worth of fake dollars and Euros at Sandalwood Apartments in Westlands. In Kisii, police impounded Sh38 million in fake American dollars and three suspects were apprehended
Senators back petition on new currency Security features If the currency swap is not managed smoothly, vulnerable Kenyans will easily be conned unless they are able to decipher security features of the new notes. According to the tender documents, CBK even wanted invisible ink used on a strip that runs vertically through the note, which changes colour depending on the angle of vision. After one of the printers sent a query finding the requirement impossible, CBK assured them that it was merely meant for “public awareness”. “Technically it is not possible to offer an invisible ink for the iridescent band. Do you mean visible ink for iridescent band?” the printer asked. “The terminology ‘invisible ink’ as used is for the purpose of public education. However, the standard iridescent band as used in bank notes is what CBK expects from the winning tenderer,” the bank responded. Besides the watermark, governments and central banks need further authentication. CBK opted to use the M-Feature (machine readable feature) despite printers offering new technologies for authentication. “Please can CBK advise if the tenderers may submit equivalent or later generation superior covert features to that of M-Feature,” one asked.