A Mauritius-based investment firm, Monarch Capital Limited, has acquired a 60 percent controlling stake in De La Rue Kenya EPZ for Sh400 million. This marks a significant shift in ownership of the Ruaraka-based banknote printer. The Competition Authority of Kenya approved the transaction, which involved Thomas De La Rue AG, a wholly owned subsidiary of De La Rue plc, transferring the stake to Monarch Capital.
The acquisition leaves the Kenyan government with a 40 percent stake in De La Rue Kenya EPZ through the National Treasury. This shareholding was established in 2017 when the Kenyan government acquired a 40 percent stake in De La Rue Kenya, creating a joint venture with the British security-printing group. The ownership change comes alongside changes to the company’s board, including the appointment of former Safaricom chief executive Michael Joseph as a director.
De La Rue had dominated Kenya’s banknote-printing business for over 30 years before losing the contract to German security-printing company Giesecke+Devrient Currency Technologies GmbH (G+D) in April 2024. The Central Bank of Kenya awarded G+D a Sh14.2 billion five-year contract to print Kenyan banknotes. De La Rue suspended banknote production at its Ruaraka facility in January 2023 amid a dry-up of new orders after its contract with the CBK expired.
The suspension of Kenya operations was part of a wider business restructure to limit costs and asset impairments. De La Rue’s exit from banknote production marked a major shift for a business that had been closely associated with Kenya’s currency for decades. The company’s relationship with Kenya dates back to 1966 through its predecessor companies, Thomas De La Rue & Company Limited and Bradbury & Wilkinson.
De La Rue plc is listed on the London Stock Exchange, and its roots are in Britain, tracing its origins to a printing business established by Thomas de la Rue in London. While Thomas De La Rue AG is based in Switzerland, it is part of the wider De La Rue group. The acquisition provides Monarch Capital control of a company with an established secure-printing facility, technical expertise, and a long history of working with the Kenyan government.
It remains unclear whether the new owner intends to revive banknote production at the Ruaraka facility or shift the business towards other areas of security printing. De La Rue has also been involved in the production of secure documents beyond banknotes, including passports in Kenya, while the group continues to provide technical support for passport production in Uganda.
For Monarch Capital, the acquisition presents an opportunity to leverage De La Rue Kenya’s expertise and facilities. The new ownership structure and potential future plans for the company will be closely watched by stakeholders in Kenya’s security-printing industry. The changes to the company’s board, including the appointment of Michael Joseph, may also influence the company’s strategic direction.
Key points
- Monarch Capital Limited acquired a 60 percent controlling stake in De La Rue Kenya EPZ for Sh400 million.
- The Kenyan government retains a 40 percent stake in De La Rue Kenya EPZ through the National Treasury.
- The acquisition marks a significant shift in ownership and potential future plans for the Ruaraka-based banknote printer.
