In Summary
  • Swedish firm Crane AB accuses CBK of breaching the Constitution and lacking transparency in awarding the deal to De La Rue International under the guise of 15 per cent margin preference for having local shareholding.

The procurement watchdog on Wednesday kicked off closed door-hearing of a landmark case challenging the award of a multibillion shilling tender for printing new look currency to British firm De La Rue International last year.

Swedish firm Crane AB, through lawyer James Gitau Singh accuses Central Bank of Kenya (CBK) of breaching the Constitution and lacking transparency in awarding the deal to De La Rue International under the guise of 15 per cent margin preference for having local shareholding.

The company further argues the award will burden Kenyan taxpayers with higher costs against best practice.

The UK firm has had a stranglehold on the business except for the period between 1966 and 1985 when notes were printed by UK firm Bradbury Wilkinson, later acquired by De La Rue.

“The procuring entity (CBK) failed to give all tenderers an open and transparent opportunity at winning the award, thus compromising the integrity, fairness, transparency and accountability of the process in violation of the stated objectives of the Public Procurement and Disposal Act 2005 as enumerated in Section 2 of the said Act and Article 227 of the Constitution of Kenya,” argues Crane AB in a petition before the Public Procurement Administrative Review Board.

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