Senator Okiya Omtatah demands probe into CBK’s Ksh14.5 billion currency printing deal with German firm

The Central Bank of Kenya (CBK) has been thrust into the spotlight after Busia Senator Okiya Omtatah questioned the legality and transparency of a Ksh14.5 billion currency printing deal awarded to German firm Giesecke & Devrient.

Speaking in Senate on Tuesday, Omtatah accused CBK of flouting procurement laws by bypassing open competition and failing to constitute a special procurement committee, despite the deal’s magnitude.

“The Auditor-General flagged irregularities including failure to appoint a special procurement committee and bypassing open competition without valid grounds of urgency or national security,” Omtatah said, urging the Senate Finance and Budget Committee to fully interrogate the matter.

He argued that the deal risks undermining public confidence in state procurement systems and urged comparisons with past contracts, noting that in 2005, Kenya saved money through an open tendering process.

According to the 2024 Auditor-General’s report, CBK failed to comply with key provisions, including oversight by the Public Procurement Regulatory Authority (PPRA) and supplier vetting, raising questions on whether due process was followed.

While CBK defended the contract, citing approvals from the National Security Council and the Treasury, Omtatah dismissed the justification, saying the regulator was not a security organ and therefore had no grounds to avoid open tendering.

Documents show the contract was signed on April 22, 2024, following Treasury clearance in January. However, auditors said CBK did not meet requirements under Regulation 84 of the 2020 Procurement Regulations, including supplier identification and the mandatory formation of a procurement committee for classified deals.

The oversight gaps, according to the audit, raise fresh doubts on whether the deal served the best interests of Kenyan taxpayers.