De La Rue counts heavy cost of unceremonious Kenya exit
Business
By
Brian Ngugi
| Jul 26, 2025
For decades, British banknote printer De La Rue straddled the Kenyan financial landscape like a colossus, its presence deeply embedded in the nation’s currency.
However, the unceremonious loss of its lucrative contract, following a change in government, has dealt a profound blow, sending ripples of financial pain across its global operations.
The company’s once-vibrant Nairobi factory now stands as a symbol of assets in limbo along the Thika Superhighway, reflecting a painful chapter in the 210-year-old firm’s history.
The financial pain, compounded by a substantial tax dispute, is evident in the company’s latest full-year results.
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De La Rue’s financial report for the period ended March 30, 2024, reveals a sharp decline in its core currency division.
Revenue in this segment plummeted by 18.7 per cent to £207.1 million (approximately Sh35.94 billion) from £254.6 million (approximately Sh44.19 billion) in the previous fiscal year.
This contributed to an overall group revenue fall of 11.3 per cent to £310.3 million (approximately Sh53.86 billion) from £349.7 million (Sh60.69 billion) in the financial year 2023.
The company posted a pre-tax loss of £15.4 million (Sh2.67 billion), an improvement from FY23’s £29.6 million (Sh5.14 billion) loss, but reflecting significant headwinds.
The report directly links these challenges to its Kenyan operations. “In FY23, the division was impacted by substantial exceptional costs in relation to the wind down of Kenya,” the company stated.
These exceptional divisional costs totalled £38.4 million (Sh6.66 billion) in its financial year 2023.
Furthermore, the “loss of revenue in Kenya” also “moderated overall sales growth” for De La Rue’s Authentication division in the 2023 financial year.
Adding to the financial burden, De La Rue was ordered by the Kenyan High Court to pay Sh1.1 billion ($7.6 million) from a long-running tax dispute. The company’s report indicates it is “disputing tax assessments received from the tax authorities of some countries in which the Group operates” and holds provisions for “uncertain tax positions” totalling £18.2 million (Sh3.16 billion).
The Central Bank of Kenya (CBK) secretly awarded a new $109.42 million (Sh15 billion) currency printing tender to Germany’s Giesecke+Devrient (G+D) without public bidding.
CBK Governor Dr Kamau Thugge justified the “classified procurement” by citing an “imminent stockout” of currency and stating that De La Rue’s “previous supply contract had lapsed and the British firm had already shut down the Nairobi factory and dismissed all the staff.”
De La Rue’s operations in Kenya were conducted through a joint venture with the Kenyan government, where the Kenyan government held a 40 per cent equity share.
This means that while De La Rue held the majority stake, the government was a significant minority shareholder in the local entity, De La Rue Kenya EPZ Ltd.
The factory, once a key regional hub and the only ISO 14298-accredited site in Africa, now lies idle, with its assets in limbo.
CEO Clive Vacher acknowledged the broader impact: “De La Rue’s businesses successfully navigated substantial trading challenges faced in the last financial year and met all the expectations that were set.”
“We worked hard to minimise the business impact of the challenges we faced, particularly the industry-wide downturn in Currency... further refining the efficiency of our operations through ceasing production in Kenya and flexing our operating model more in line with expected patterns of production.”
Despite the substantial financial hits and operational streamlining, De La Rue aims for a turnaround.
The company has seen an “uptick in tender activity” in its Currency division and a “recovery in the Currency market.”
It also secured over £150 million (Sh26.03 billion) in future revenues through multi-year contract renewals in its Authentication division.
However, for the historical firm, the closure of its Kenyan operations and the uncertainty surrounding its assets underscore the profound global ripple effects of local market shifts, reckons the bank note maker.