Friday, June 30, 2023 –Currency printer De La Rue has laid off staff and shut down its operating offices in the country.
The bank notes printer, according to Homenews.co.ke on Friday June 30, paid off all of its workers all outstanding amounts so that to exit stage.
In an update made on Friday morning, the cash printing firm had spent sh 2.7 billion (£15.1 million) to lay off staff as well as pay its lawyers and write off its assets as it closes down operations at its Nairobi unit.
In their official statement, De La Rue argued that the Kenyan market had little money printing activities in what it described as low currency and cheque intake.
The multinational firm, which has been printing notes for Kenya through a local joint venture that is 40 percent owned by the Kenyan government, says in the latest trading update that it has now fully closed its notes printing line and is at the tail end of shutting down the cheques business.
The company, operating in Kenya as De La Rue Kenya EPZ Limited, had about 300 employees.
In its trading update, further, De La Rue stated that it has used £5.5 million (sh 977.1 million) on redundancy charges, £4.9 million (sh 870.5 million) to write off property, plant and equipment and £2 million (sh 355.3 million) to impair inventory.
“As a result of the review of the business in Kenya, an exceptional charge of £12.6 million was made in the financial year 2023,” partly read its update.
Moreover, the firm incurred £2.5 million (sh 444.15 million) charge for redundancy and legal fees in relation to restructuring initiatives in both the currency and authentication divisions to right-size for future operations.
De La Rue headquartered in Basingstoke, England launched its services in Kenya in the year 1991.
