Government of Kenya signs Joint Venture deal with De La Rue
The Government of Kenya has today signed an agreement to commence a joint venture with De La Rue.
Under the terms of the agreement, the Government of Kenya will take a 40% interest in De La Rue’s wholly owned subsidiary, De La Rue Kenya EPZ Limited for GBP£5million.
The transaction is expected to complete by the end of the year. De La Rue will continue to operate and manage the business after the completion.
Martin Sutherland, Chief Executive Officer of De La Rue, commented:
“De La Rue is delighted to have extended our longstanding relationship with the Government of Kenya into an ever closer partnership. The joint venture will secure our position as a supply hub of currency and security solutions for the largest economy in East Africa and for the region ensuring a continuing and stable supply of technically advanced currency.”
The joint venture’s facility in Nairobi will become one of 3 manufacturing Centres of Excellence for banknote and security printing identified as part of the Group’s recent footprint review. These Centres of Excellence will share up to £15m of investment over the next 2 years.
The Kenya facility will produce for both the domestic and export markets, and directly employs 290 people locally.
The Nairobi factory will produce 1 billion banknotes a year with potential to increase the production output by 50% with the installation of new equipment.
Mr. Sutherland added:
“At De La Rue, we are proud of our 200 years of heritage, but it is our future that excites us. We look forward to working in a thriving East African Community, with Kenya at its centrepiece. We see the potential for Kenya to become a hub for personal identification solutions, passports and security documents. We are proud to be making this commitment to Kenya, by investing in the future, the facility and the Kenyan people.”
Speaking following the signature, Deputy British High Commissioner to Kenya, Dr. John Murton, said:
“These are exciting times for both our countries. Britain has the fifth largest economy in the world and, as it prepares to leave the EU, is committed to increasing its trade and investment links globally. Kenya is a regional powerhouse and the gateway to East Africa and beyond. The new agreement signed today shows our economic partnership at its best, with UK business investing in Kenya’s economy and working with the Government of Kenya to deliver a vital service for the country”.