Court Ruling on Procurement of Printer of New Generation Bank Notes
The Central Bank of Kenya (CBK) welcomes today’s landmark judgement by the Court of Appeal, on the case that challenged elements of the High Court’s decision of 9th April 2018, relating to the issuance of new generation bank notes. The Court of Appeal decision, taken together with the previous High Court decision, confirms that there was no proof of collusion (or any sweet heart deals) between the CBK and the successful bidder, De La Rue International Limited.
Both judgements fully vindicate all aspects of the procurement process employed by the CBK. In particular:
- The Court of Appeal upheld all the grounds of CBK’s appeal.
- The entire procurement process (pre-qualification, design, printing and supply of the new currency) by CBK was conducted in accordance with the Constitution and the applicable laws.
- The preference margin of 15 percent was properly applied by CBK in the evaluation of the bid that was placed by De La Rue International Limited. In addition, the application for preferential treatment and subcontracting was properly made by the successful bidder and there was no bar to sub-contracting.
- The Law applicable to this procurement of currency is the Public Procurement and Asset Disposal Act of 2015.
- CBK acted within the law in awarding the tender to De La Rue International Limited on 30th November 2017.
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 bank notes. 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 the issuance of these bank notes, and will proceed with all due haste.
CBK will continue this process in accordance with the Constitution and all applicable laws.
