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Friday, June 30, 2023 –Long-serving currency printer De La Rue has laid off staff and shut down its operating offices in the country.
The bank note printer, according to information reaching Homenews.co.ke on Friday June 30, has paid off all of its workers any outstanding amount so that to exit local stage in Kenya.
In an update made on Friday, 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 its statement seen by this writer, De La Rue argued that the Kenyan market had little money printing activities in what it described as ‘low currency and cheque printing business’.
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 with several departments.
In its trading update, 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 De La Rue’s latest 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 which is headquartered in Basingstoke, England launched its services in Kenya in the year 1991.
