Central Bank of Kenya has allayed fears of a possible shortage of banknotes following the suspension of its operations by the printing firm De la Rue.
According to CBK, there was an adequate supply of the currency notes and coins hence no cause for alarm.
“The currency needs are completely fulfilled and so the move will not affect the supply,” Governor Patrick Njoroge said when he addressed the press during a post-monetary Policy Committee briefing.
The British currency printing firm announced on January 20 it is suspending its operations in the country over what it termed as a poor economic climate and reduced orders.
“Owing to current global market demand, and no expectation of new banknote orders from the Central Bank of Kenya for at least the next 12 months, De La Rue Kenya has suspended banknote printing operations in the country,” the company said in a notice.
This emerged after a Nairobi High Court ordered the UK firm to pay the Kenya Revenue Authority Sh1.1 billion from a past tax case due between 2013-17.
Apart from designing and producing banknotes, De La Rue also produces passports among other documents.
It, however, said it would appeal the ruling which it termed unfair.
“De La Rue is disappointed with the ruling and its Kenya subsidiary is preparing an appeal to the Court of Appeal,” De La Rue said.
