The Sh14.2 Billion Currency Printing Controversy: A Gamble with Public Funds or Necessary Investment?

In a move that has sparked public outrage and reignited debates on fiscal responsibility, the Central Bank of Kenya (CBK) has disclosed that the printing of new currency notes will cost taxpayers a staggering Sh14.2 billion. The announcement, made by CBK Governor Kamau Thugge before the Finance Committee chaired by Molo MP Kuria Kimani, has left many Kenyans questioning the priorities of their government during tough economic times.

A New Contractor, Same Old Story?

In a surprising twist, the lucrative tender for printing the new currency notes has been awarded to Giesecke+Devrient Currency Technologies (G+D), a German firm, despite previous contracts being serviced by the British company, De La Rue, which has had a long-standing presence in Kenya. The switch has not only raised eyebrows but also fueled speculation about the transparency and fairness of the tendering process.

The decision to move the contract to a foreign firm comes amidst a backdrop of public dissatisfaction with government spending. Many Kenyans are grappling with the high cost of living, and the news of this significant expenditure on currency notes has been met with widespread discontent. With the government recently introducing new taxes and increasing the cost of basic commodities, the timing of this announcement couldn't be worse.

The Numbers Game

According to Governor Thugge, the Sh14.2 billion contract is actually $3 million (approximately Sh427 million) lower than the previous contract with De La Rue. However, critics argue that this does little to soften the blow for taxpayers who are bearing the brunt of economic hardship. The government has justified the expenditure by stating that the new notes are of higher quality and that there is an ongoing need to replenish the supply of currency as old notes wear out.

But for many Kenyans, this reasoning rings hollow. They question whether this massive outlay is truly necessary, especially at a time when the country is grappling with urgent issues such as unemployment, healthcare shortages, and a struggling education system.

A Wasted Investment?

The CBK has already begun circulating the new Sh1,000 notes, with the rest of the denominations expected to follow soon. A total of 2.04 billion currency notes will be printed, with a combined monetary value of Sh689 billion. This is a reduction from the 2.35 billion notes printed in the 2019 series, but the cost to the taxpayer remains alarmingly high.

As the controversy surrounding this deal continues to unfold, many are left wondering: Is this a necessary investment to maintain the integrity of our currency, or just another example of misplaced priorities by those in power? With the economic challenges that ordinary Kenyans face every day, this Sh14.2 billion could have been directed towards more pressing needs that directly impact the lives of the citizens.

The Bigger Picture

This latest development is a stark reminder of the broader issues of governance and accountability that have plagued Kenya for years. As MPs and the public demand more transparency from the CBK and Treasury, it is essential that the government listens to the concerns of its citizens and acts in their best interests.

In a country where every shilling counts, the people have a right to question where their money is being spent. The Sh14.2 billion currency printing deal is not just a financial decision; it's a statement about the government's priorities. And for many Kenyans, that statement is deeply troubling.

As the dust settles on this controversy, the voices of ordinary Kenyans must not be drowned out. The government needs to address the concerns raised and provide clear answers. Until then, the Sh14.2 billion price tag will continue to hang over this deal like a dark cloud, casting a shadow on the credibility of those who signed off on it.