Kenyan government acquires 40 per cent stake in currency printing firm De La Rue
The Government of Kenya has acquired a 40 per cent stake in currency printing firm De La Rue at a cost of £5 million that will see government owning a stake in the firm’s subsidiary De La Rue Kenya EPZ Limited.
The transaction is expected to complete by the end of the year. De La Rue will continue to operate and manage the business after the completion.
“De La Rue is delighted to have extended our longstanding relationship with the Government of Kenya into an ever closer partnership. The joint venture will secure our position as a supply hub of currency and security solutions for the largest economy in East Africa and for the region ensuring a continuing and stable supply of technically advanced currency.” Martin Sutherland, Chief Executive Officer of De La Rue said
The joint venture’s facility in Nairobi will become one of three manufacturing Centers of Excellence for banknote and security printing identified as part of the Group’s recent footprint review. These Centers of Excellence will share up to £15m of investment over the next 2 years.
The Kenya facility will produce for both the domestic and export markets, and directly employs 290 people locally.
The Nairobi factory will produce 1 billion banknotes a year with potential to increase the production output by 50% with the installation of new equipment.
Mr. Sutherland added: “At De La Rue, we are proud of our 200 years of heritage, but it is our future that excites us. We look forward to working in a thriving East African Community, with Kenya at its centrepiece. We see the potential for Kenya to become a hub for personal identification solutions, passports and security documents. We are proud to be making this commitment to Kenya, by investing in the future, the facility and the Kenyan people.”
Speaking following the signature, Deputy British High Commissioner to Kenya, Dr. John Murton, said:
This marks the end of an eight year process to sign a joint venture agreement with the British currency and security printer.
According to the Treasury Cabinet Secretary Henry Rotich, the joint venture had delayed due to concerns on the original structure of the transaction that had a contentious exclusive printing clause that would have bound the government to a 10 year currency printing deal.
The government will get two board seats in the Kenyan unit and will be able to dictate strategic decisions.
Dividend earnings, employment and foreign exchange inflows are among the benefits the government says will be derived from the deal.
The Kenyan facility which employs 290 people will be producing for both the domestic and export markets.
De La Rue Kenya will use the new partnership with government to angle for new currency printing businesses in the region.
