Category Archives: De la Rue

CBK Profits

The Central Bank of Kenya last week published for the their ended in June 2008(PDF)


Return to profitability
– Had a net foreign exchange gain of Kshs. 54 million, compared to a loss of Kshs. 9.3 billion in 2007. This changed the profit picture and enabled the bank to post a profit of Kshs. 8,995 million [9 billion or ~$123 million compared to a loss of 386 million in 2007
– Total income of was Kshs. 14 billion, up from 5 billion. Barclays, Kenya’s largest bank had total income of Kshs. 18.9 billion) up from 5 billion the year before
– Will pay Kshs. 4 billion dividend to the government

– Had staff costs of Kshs. 3. 3 billion (which would be third after KCB and Barclays if compared to commercial banks)
– Commission on sale of government securities dropped to Kshs. 3.1 billion (from 5.2b in ’07)
– Kenya has Kshs. 100 billion (~~1.37 billion) worth of currency circulating, compared to 90 billion in 2007

Vindicates Kimunya
– Currency printing expenses were Kshs. 403 million (down from 1.25 billion in 2007) and something which the former finance minister was crucified for in dealing with De La Rue
– Mentions the $45 million sale of the grand regency for which the payment is tallied

Bank Roundup (June 07)

all banks share capital raised from 250 million to 1 billion. At the beginning of the year, 25 of 43 banks were below this mark (with 7 banks below 500 million). This is an update/reversal of an older proposal to lower the share capital when some banks were struggling a few years ago. Not many mergers expected though it may prompt some mid size banks to go for a public listing to raise cash (only 3 banks lost money last year)

Central bank has advertised for some currency destruction contracts as the east African reports on talks for the government to invest in the current currency supplier DE La Rue

Diamond Trust to venture into Islamic Banking

East African Development Bank profit went up by 229% to $4.6 million – up from $1.4 million the year before. Assets increased to $262m dollars and their non-performing portfolio reduced by 11%

Equity bank won an international award – the 2007 global vision in microfinance award. Also KTN reported that the that the bank will open three women only branches in Nairobi

Two month old Family Bank is seeking a new managing director

KCB to expand into Uganda as it also wins an international award – the Africa investor for best performing stock in Africa award (shares price up 97% ) > but the company also held one of the longest dreariest AGM’s in history on Friday

National bank finally got recapitalized. NBK could receive 346 million in 2007 and 2008, a bullet payment in 2009 of 4.3 billion, 220m in 2010 and 2011 and another bullet payment of 5.2 billion in 2012. For 2013 – 2015 123m each and in 2016 a lump sum of 5.2b. 2017 to 2020 58m each and a final payment of 6 billion – for a total of Kshs. 22.48 billion ($340 million)

NIC to increase authorized share capital via a rights issue. The board approved it on June 14, but there was no mention at the AGM on May 16. This follows a Fitch Report indicating that mid-size Kenyan banks need to increase their capital


East African breweries is accepting applications for a graduate management program. Details online and D/L is 22/6

Family bank: chief executive officer, credit manager. Apply through deloitte – by 29/6

Kenital solar : sales & marketing manager, technical manager, engineer sales executives (5) regional managers (4). Apply to by 22/6

Country manager at Steadman Tanzania . Apply to by 22/6

A dozen IT, research and engineering jobs at Safaricom

Writers at a new Swahili newspaper. Apply to

Project management specialist at USAID.apply to

Rhodes scholarships: 2 for Kenyans to pursue full time post graduate study at the University of Oxford. Apply to by 15/9

Real estate: for the monied in the Diaspora, those who have worked hard and are looking to return in style, consider investing in Kihingo village a gated community development in Kitusuru where prices start at $500,000.

Anglo Currency

One year ago today, The Sunday Standard reported on an attempt to swing the contract to print Kenya’s currency towards French firm, Francois-Charles Oberthur Fiduciaire, which had previously been sub-contracted by Anglo Leasing to print “new generation passports” for the Kenya government. Eventually, De La Rue retained the contract, which they have held since independence.

Currency printing in Africa

From Africa Investor magazine’s May – August 2005 edition. (I’d link to this article about currency printing in Africa, titled “Paper Wealth,” by Neil Ford but it’s not available online). By his research, the top currency companies in Africa are:

1. De La Rue (UK) (45% of the African market)
2003 results: Sales 211 million pounds (banknotes and paper only)
Net income 30.4 million pounds – and dividend of 13.6 p per share
One of the biggest producers and suppliers of bank notes, printing 150 national currencies worldwide and has supplied notes to Africa since 1860 when it delivered notes to Mauritania. Has a production plant in Kenya and paid a dividend of Euros 23 million in 2004. The company plans to do better and is undergoing a restructuring that will see it dispose of non-core businesses to improve productivity.

2 Giesecke & Devrient (G&D) (35% of the African market)
2003 results: Sales (banknotes and paper only) Euros 588 million with Europe, Middle East and Africa business being Euros 479 million
Net income Euros 28.8 million
Is the 2nd largest private sector supplier of paper money in Africa, and printed four billion banknotes last year. Has secured contracts from Nigeria, Ghana, Rwanda, Tanzania, Kenya, and others and has an office in Cairo and operations in SA and Nigeria.

3. Francois-Charles Oberthur Fiduciaire (FCOF) (10% of the African market)
2003 results: Sales (banknotes and paper only) Euros 60 million
African business Euros 30 million
This French firm has activities in 70 countries worldwide but has achieved most of its success in Francophone Africa.

Other players are:
The Canadian Bank Note Company
Crane (Sweden)
Enschede (Netherlands)
Orell Fuessli (Switzerland)

In summary, low production costs make Africa an attractive place to set up printing facilities.

PR/media campaigns

De La Rue
Thomas De La Rue, who print the currency for Kenya and many other countries have launched a PR. campaign at a time when their contract to print Kenya’s currency is up for review. De La Rue point out that they have invested in a 3 billion shilling factory in Nairobi where they print many world currencies, employ 300 trained Kenyans and contribute 600 million shillings annually to the Kenyan economy.

De La Rue have printed Kenya’s currency since independence, but have faced stiff competition from new companies and politicians, including one arm of Anglo-Leasing.

Italians at the Coast
Italian Residents of Malindi and Coast Province have also launched a PR campaign to refute allegations that they engage in drug trafficking and prostitution activities. They point out that they are responsible for 85% of the tourism business in Malindi, and are behind numerous community & charitable activities. Also that, out of the 1,000 Italians on the island, only 5 have been investigated for criminal activities over the last 27 years

Boycott Delamere
There’s a chain mail going round urging Kenyans to boycott Delamere products following the controversial dismissal of murder charges against Delamere’s grandson who had shot and killed a Wildlife ranger.

Mo Money
Foreign Affairs Minister, Chirau Ali Mwakwere wants the High Court to increase the 3 million shillings awarded to him following a successful defamation suit against Royal Media Services.