De La Rue defends proposed joint venture on Kenya currency printing

Currency and security printer De La Rue has defended its proposed joint venture with the Treasury, saying the government would recover its initial investment within three years.

The venture has raised eyebrows after the Central Bank distanced itself from the deal, for which no feasibility study was done, saying it would not guarantee the firm the business of printing Kenya’s currency.

Mr Mark Crickett, the commercial head of De La Rue Currency and Security Print Kenya said Treasury’s initial investment would be £5million (Sh667million) for a 40 per cent stake.

“The government will have its investment repaid within three years,” he told a media briefing in Nairobi Wednesday.

The period for the return on investment is based on projections that earnings before interest and tax (EBIT) would be pound sterling 4.7 million in the coming financial year, rising to pound sterling five million in the 2013/4 fiscal period and pound sterling 5.3 million a year later.
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