Monarch Capital Takes 60% Stake in De La Rue Kenya After CAK Approval

De La Rue Kenya is set for a major ownership change after the Competition Authority of Kenya approved the acquisition of a 60 per cent stake by Mauritius-based Monarch Capital Limited.

The approval was issued by CAK following its review of the transaction under the Competition Act.

CAK Director General David Kimeli said the Authority had exercised powers granted under Section 46(6) of the Competition Act to authorise the deal.

Following completion of the transaction, Monarch Capital will control 60 per cent of De La Rue Kenya.

The remaining 40 per cent will continue to be held by the Kenyan government through the National Treasury.

De La Rue’s long history in Kenya

The ownership change comes against the backdrop of De La Rue’s long involvement in the production of Kenyan currency.

Documents from the Central Bank of Kenya indicate that the company has been involved in printing the country’s banknotes since 1966 through earlier entities, including Thomas De La Rue and Bradbury and Wilkinson.

De La Rue later established a banknote printing facility in Ruaraka, Nairobi, in October 1992.

The factory subsequently became a major facility for producing Kenya’s currency and was involved in printing successive generations of banknotes.

Among the notes produced at the facility was the 2019 series introduced following implementation of the 2010 Constitution.

Government acquired 40% stake in 2017

The Kenyan government became a shareholder in De La Rue Kenya in 2017 after acquiring a 40 per cent stake during the administration of former President Uhuru Kenyatta.

The transaction created a joint venture between the Kenyan government and the British security printing company.

The latest deal will now give Monarch Capital majority ownership while the government retains its minority stake.

Banknote printing operations suspended

The transaction comes after significant changes to De La Rue Kenya’s operations in the country.

The company suspended banknote printing operations in Kenya in January 2023 after reportedly going for about a year without receiving new government orders.

De La Rue subsequently lost the contract to produce Kenyan banknotes after the Central Bank awarded a five-year printing contract to Germany’s Giesecke+Devrient in 2024.

The latest ownership arrangement therefore comes at a time when De La Rue’s role in Kenya’s currency production has already undergone major changes.

CAK’s approval clears the way for the 60 per cent acquisition by Monarch Capital, subject to completion of the transaction under the applicable requirements.