Tuesday, November 3, 2026
Star Today Logo
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion
No Result
View All Result
Star Today Logo
Home Business

De La Rue spends Sh2.7bn to lay off staff

June 30, 2023
in Business, News
Reading Time: 2 mins read
De La Rue spends Sh2.7bn to lay off staff
0
SHARES
Share on FacebookShare on TwitterShare on Whatsapp

Banknote printer De La Rue has spent Sh2.7 billion (£15.1 million) to lay off staff, pay lawyers and write off its assets as it closes down operations at its Nairobi unit due to low currency and cheques 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.

Readers' Choice

Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA

Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response

It says in the trading update that it has used £5.5 million (Sh977.1 million) on redundancy charges, £4.9 million (Sh870.5 million) to write off property, plant and equipment and £2 million (Sh355.3 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,” says De La Rue.

The firm also incurred £2.5 million (Sh444.15 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.

The expenses, covering the financial year that ended March 25, 2023, came on the back of De La Rue having announced in January that it would shut down its operations in Kenya owing to a confirmation from the Central Bank of Kenya (CBK) that there would be no offers for printing bank notes for at least the next 12 months.

De La Rue says its operations in the authentication division that handles products such as bank cards, identification cards, certificates and cheques are also in the process of winding down.

The costs associated with shutting down its operations in the country saw De La Rue Kenya post a £7.3 million (Sh1.29 billion) net loss compared with £2.2 million (Sh389.9 million) net profit a year earlier.

The Treasury, with a 40 percent stake it acquired at £5 million (Sh886.2 million) in 2019, will take a £2.9 million (Sh513.97 million) loss compared with £0.9 million (Sh159.5 million) profit it enjoyed a year earlier.

Revenue from the Kenya operations fell by 45 percent from £30.5 million (Sh5.41 billion) to £16.8 million (Sh2.98 billion), pointing to the impact of reduced note printing and authentication business.

ShareTweetSend
Previous Post

HomeBoyz shares go live at NSE

Next Post

TSC set to hire 25000 teachers starting July

Related Posts

Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA

Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA

October 27, 2026
Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response

Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response

October 27, 2026
Next Post
TSC set to hire 25000 teachers starting July

TSC set to hire 25000 teachers starting July

Please login to join discussion

Continue Reading

Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA

Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA

by Star Today
October 27, 2026

Education Cabinet Secretary Julius Ogamba has issued a stern warning against examination malpractice as the Kenya Primary School Education Assessment...

Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response

Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response

by Star Today
October 27, 2026

A fire engulfed a five-storey residential apartment building at Mbagathi Greens Estate behind Maasai Mall in Ongata Rongai, Kajiado County,...

Co-op Bank Hosts Insurance Partners’ Forum to Expand Access to Insurance Financing

Co-op Bank Hosts Insurance Partners’ Forum to Expand Access to Insurance Financing

by Star Today
October 23, 2026

Co-operative Bank of Kenya has brought together insurance partners from across the Nairobi region to strengthen collaboration and explore opportunities...

Macron vows legal action against perpetrators of violence in France protests

Macron vows legal action against perpetrators of violence in France protests

by Star Today
October 19, 2026

French President Emmanuel Macron on Sunday vowed legal action against those responsible for violence during protests across the country on...

Recent News

  • Ogamba Warns Against Exam Malpractice as 2.58 Million Learners Sit KPSEA, KJSEA
  • Fire Engulfs Five-Storey Apartment in Ongata Rongai as Residents Question Emergency Response
  • Co-op Bank Hosts Insurance Partners’ Forum to Expand Access to Insurance Financing

Category

  • Business
  • Health
  • Investigation
  • News
  • Opinion
  • Politics
  • Star Today

© 2023

No Result
View All Result
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion

© 2023