Printing of notes without the image of President Jomo Kenyatta will cost the government Sh18 billion, CBK Governor Patrick Njoroge said yesterday.
He appeared before the Senate Finance Committee.
Njoroge said Kenyans should expect the new currencies in September next year.
He said the bank missed the August 2015 constitutional deadline for rollout following the cancellation of the tender.
Njoroge said printing of the new currencies was complicated by preparations for the 2017 elections.
“It is not advisable to issue new currencies towards an election. It can cause disruption and poor acceptance of the new currency,” he said.
It will also be competing for space with politics, hence, poor public sensitisation, Njoroge said.
“Anytime from now we will be advertising fresh tenders for the origination of material,” he said.
The constitution prohibits the use of portraits or images of individuals on currency.
It states notes and coins should only bear images that depict or symbolise an aspect of Kenya.
Njoroge said once the new currencies are printed, the old ones with images of Presidents Jomo Kenyatta, Daniel Moi and Mwai Kibaki will be phased out slowly.
Njoroge told the committee chaired by Mandera Senator Billow Kerrow CBK cancelled the tender after two international companies quoted zero price contracts.
He said the office of the Attorney General advised that the contract was invalid as there was no bond in case the contractors failed to honour the agreement.
Njoroge dismissed accusations he breached the constitution by not adhering to the constitutional timeline.
He said the constitution and the CBK Act allow for a transition period.