This archive report was first published on 29 November 2019.
On November 29, 2019, De La Rue, a UK-based company that prints banknotes for Kenya, announced that it was facing a financial crisis. The company, which prints cash for about 140 central banks and employs more than 2,500 people globally, warned that it would collapse if its turnaround plan failed.
De La Rue had suspended its dividend and reported a loss in the first half of its financial year. The company's warning was based on a worst-case scenario, according to its statement.
Despite the financial struggles, De La Rue had announced in June that it had agreed to the sale of its International Identity Solutions business to HID Corporation Ltd for Sh5.53 billion on a cash-free, debt-free basis. The sale was part of the company's strategy to transform into an asset-light and more technology-led business.
However, the sale of De La Rue's business in Kenya to HID Corporation Ltd was approved by the government last month, with the condition that existing contracts with the government would be honoured.
The Court of Appeal had reversed a High Court decision to quash De La Rue's winning of the tender with CBK to print new currency notes valued at Sh11.19 billion over a three-year period in October this year.
It is unclear what would happen if De La Rue, founded by Thomas de la Rue in 1821, falls into deep financial difficulties.
