De La Rue: Banks rally customers to stock cheque books
EXIT: Kenyan banks have started advising their customers to stockpile chequebooks, while they look for alternative vendors, following currency printer De La Rue’s decision to close shop next month.
Equity Group kicked off the move that is likely to be replicated by other lenders, saying service termination will impact on production and distribution of new cheques books leading to customer inconvenience.
Consequently, the group has requested its customers to determine their chequebook stock levels and if required, place sufficient orders lasting a minimum of six months. They have until February 15 to comply with the request.
De La Rue plc has been operating a joint venture subsidiary in Kenya known as De La Rue Kenya EPZ, in which the Kenya government has a 40 per cent stake. It is the sole money and cheque printer in Kenya since 1991.
“We wish to inform you that our service provider, De La Rue Kenya EPZ is closing their operations by 31st March 2023...We have already embarked on sourcing and onboarding another vendor to tender similar services. Please do this through the existing chequebook ordering process to ensure correct serial numbers are captured.” Equity Group informed its customers through email.
The company announced the closure decision late last month, claiming the business was not forthcoming from the Central Bank of Kenya.
“Owing to current global market demand and no expectation of new banknote orders from the Central Bank of Kenya for at least the next 12 months, De La Rue Kenya has suspended banknote printing operations in the country” in a communication that was posted on the company’s website.