BANKI CENTRAL

KUU YA BANK OF
KENYA KENYA

Haile Selassie Avenue

P.O. Box 60000 00200, Nairobi, Kenya
Telephone: 2861000/2863000
Fax 340192/250783

TENDER NO: CBK/37/2017-2018

RESTRICTED TENDER

FOR:

PRINTING AND SUPPLY OF

NEW DESIGN KENYA CURRENCY BANKNOTES

CLOSING DATE: WEDNESDAY NOVEMBER 22, 2017

AT 1030 HOURS EAST AFRICAN TIME (EAT)

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 TABLE OF CONTENTS

PAGE

INTRODUCTION . 3

*SECTION I INVITATION TO TENDER.. 6

*SECTION II INSTRUCTIONS TO TENDERERS. 7

Appendix to Instructions to Tenderers.... 19

*SECTION III GENERAL CONDITIONS OF CONTRACT.. 22

*SECTION IV SPECIAL CONDITIONS OF CONTRACT ........... 28

*SECTION V TECHNICAL SPECIFICATION ... 31

*SECTION VI SCHEDULE OF REQUIREMENTS .. 41

*SECTION VII PRICE SCHEDULE FOR GOODS.. 46

*SECTION VIII STANDARD FORMS .... 48

8.1 FORM OF TENDER . 49

8.2 CONFIDENTIAL BUSINESS & QUESTIONNAIRE FORM 50

8.3 TENDER SECURITY FORM .. 52

8.4 CONTRACT FORM ... 53

8.5 PERFORMANCE SECURITY FORM.. 54

8.6 BANK GUARANTEE FOR ADVANCE PAYMENT.. 55

8.7 MANUFACTURERS AUTHORIZATION FORM 56

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INTRODUCTION

A. PURPOSE
Through this Tender the Procuring Entity hereby referred to as the Central Bank of Kenya is
inviting pre-qualified suppliers to print and supply of new design Kenya currency banknotes
and accompanying covert feature readers and develop public education material for the new
design currency. The deliverables of this tender shall be delivered to the Central Bank of Kenya
and will be the property of the Central Bank of Kenya.

B. BACKGROUND
The Constitution of Kenya 2010, under Article 231(4) states that:
Notes and Coins issued by the Central Bank of Kenya may bear images that depict
or symbolize Kenya or an aspect of Kenya but shall not bear the portrait of any
individual
However, in the Sixth Schedule (Article 262) of the Transitional and Consequential Provisions
of the Constitution, it is provided that:
Nothing in Article 231(4) affects the validity of coins and notes issued before the
effective date
Through this Tender, the Central Bank of Kenya is inviting pre-qualified suppliers to print and
deliver new design Kenya currency banknotes and associated deliverables specified in this
tender.
To facilitate successful completion of this tender, the Bank is in possession of the new design
currency origination materials and dataset files to be submitted to the winning Tenderer(s) to
commence the printing and supply of new design Kenya currency.

C. GUIDELINES IN PREPARATION OF THE TENDER DOCUMENT

In preparing a response for this Tender, Tenderers are advised to note the following:

1. Section I Invitation to Tender

This section gives guidelines on how and where to seek further clarification pertaining to the
tender document; Whether Tender Security is required or not; where and when the tenders
should be submitted; and place where tenders will be opened.

All bidders are notified that tender documents shall ONLY be collected by a duly authorised
officer of the invited tenderer. Tenderers are requested to forward the identification details of
the authorised officer through the provided email prior to sending them to CBK.

2. Section II Instruction to Tenderers

This section guides tenderers on how to prepare their bid and how the tendering process will
be carried out up to the award stage including notification of award to the successful Tenderer.
Appendix to Instruction to Tenderers customizes clauses under Section II. Wherever there is

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a conflict between the provisions of the Instructions to Tenderers under Section II and the
provisions of the appendix, the provisions of the appendix prevail.

3. Section V Schedule of Requirements

This gives information on how the tender will be evaluated. Tenderers should be able to
evaluate their bids before submission to determine in advance whether they meet the
requirement of the bid or not. Through the evaluation criteria Tenderers will be able to note
all the required documents that should be attached to the bid document.

Checklist of Document Forming the Bid Document

Tenderers
No. Requirements for the Bid
Remarks
1. All pages of the bid MUST be serialised by the Tenderer

2. Tender Security of United States Dollars Five Hundred Thousand

Only (USD 500,000) valid for at least 30 days after the tender
validity period and in conformity to the standard tender document
provided.
3. Copy of the companys current Certificate of Tax Compliance
issued by the Revenue Authority of the domicile country and valid
as at the date of tender opening.
4. Gantt chart to illustrate time schedule of activities supporting the
printing process.
5. Tenderers signed declaration letter that they shall not be involved in
corrupt or fraudulent practices and confirmation of their sub-
contractors on non-debarment from participating in procurement
proceedings in accordance to Section 62 of the Public Procurement
and Asset Disposal Act, 2015.
6. Confidentiality Undertaking Letter - undertaking to maintain
confidentiality with regard to specifications and requirements
pertaining to the tender during and after the tender process.

7. Letter from covert feature supplier confirming the following:-

a. Ability to supply the covert feature for the number of
banknotes quoted
b. Ability to supply and install required number of sensors for
the Banknote Processing Systems (BPS)
c. Ability to supply required desktop readers for the covert
feature
d. Undertaking to provide one year warranty after supply and
installation of the sensors and readers
e. Provision of a three year maintenance contract for readers
and sensors after expiry of warranty, which is to be included
in the cost quoted.
8. Certified copies of last three years audited financial statements
which should not be older than 2014.

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 Tenderers
No. Requirements for the Bid
Remarks
9. Duly completed original bid document as issued by CBK.
10. Duly completed copy of the bid document.
11. Confirmation of banknote storage capacity of up to 40 million
pieces per lot.

Tenderers are reminded that:-

a) Any fraudulent practices, misrepresentation or misleading information with the intention

to influence the outcome of this procurement will lead to imposition of offences and
sanctions under Section 176 of the Public Procurement and Assets Disposal Act, 2015.

b) Failure to furnish all information required by the Tender documents or to submit a Tender
not substantially responsive to the Tender documents in every respect will be at the
Tenderers risk and may result in the rejection of its Tender.

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 SECTION I INVITATION TO TENDER

TENDER REF NO.: CBK/37/2017-2018

TENDER NAME: PRINTING AND SUPPLY OF NEW DESIGN KENYA

CURRENCY BANKNOTES

1.1 The Central Bank of Kenya invites sealed Tenders from prequalified candidates for
printing and supply of new design Kenya currency banknotes

1.2 Interested prequalified candidates may obtain further information on this Tender during
the Banks working hours from Monday to Friday from:

The Acting Director,

Department of Procurement and Logistics Services (DPLS)
Central Bank of Kenya
Haile Selassie Avenue
Nairobi, Kenya

Email: dpls@centralbank.go.ke
Tel: +254 20 2861000/2860000

1.3 A complete set of tender documents may be obtained by the interested prequalified
candidates free of charge.

1.4 Completed tender documents should be enclosed in plain sealed envelopes marked with
tender reference number and be deposited in the Green Tender Box No. 4 at the
Ground Floor, Central Bank of Kenya Building situated along Haile-Selassie Avenue,
Nairobi or be addressed to the address provided in 1.2 above so as to be received on or
before Wednesday November 22, 2017 at 1030 Hours East African Time.

1.5 Prices quoted should be net inclusive of all taxes and delivery and must be in United
States Dollars and shall remain valid for 150 days from the closing date of the tender
i.e. Wednesday November 22, 2017.

1.6 Tenders will be opened immediately thereafter in the presence of the candidates or their
representatives who choose to attend at the presentation room on 6th Floor, Central Bank
of Kenya Head Office, Nairobi, along Haile Selassie Avenue.

ACTING DIRECTOR,
DEPARTMENT OF PROCUREMENT AND LOGISTICS SERVICES

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 SECTION II - INSTRUCTIONS TO TENDERERS

Table of Clauses Page

2.1 Eligible Tenderers 8
2.2 Eligible Goods. 8
2.3 Cost of Tendering. 8
2.4 Contents of Tender Document. 8
2.5 Clarification of Tender Documents..... 9
2.6 Amendment of Tender Document... 9
2.7 Language of Tender. 10
2.8 Documents Comprising the Tender. 10
2.9 Tender Forms... 10
2.10 Tender Prices... 10
2.11 Tender Currencies 10
2.12 Tenderers Eligibility and Qualifications.. 11
2.13 Goods Eligibility and Conformity to Tender Document 11
2.14 Tender Security............................ 12
2.15 Validity of Tenders.. 12
2.16 Format and Signing of Tenders 13
2.17 Sealing and Marking of Tenders.. 13
2.18 Deadline for Submission of Tender .... 13
2.19 Modification and Withdrawal of Tenders.... 14
2.20 Opening of Tenders.. 14
2.21 Clarification of Tenders 15
2.22 Preliminary Examination 15
2.23 Conversion to Single Currency. 15
2.24 Evaluation and Comparison of Tenders 16
2.25 Contacting the Central Bank of Kenya. 16
2.26 Award of Contract 16
(a) Post Qualification 16
(b) Award criteria 16
(c) Central Bank of Kenyas Right to Accept or Reject any or all Tenders 17
2.27 Notification of Award.. 17
2.28 Signing of Contract.. 17
2.29 Performance Security .. 17
2.30 Corrupt or Fraudulent Practices... 18

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 SECTION II INSTRUCTIONS TO TENDERERS

2.1 Eligible Tenderers

2.1.1 This Invitation for Tenders is open to all Tenderers prequalified by the Central Bank of
Kenya for the production of banknote origination material and currency printing
services. Successful Tenderers shall print and deliver new design Kenya currency
banknotes by the intended completion date specified in the Schedule of Requirements
under Section VI.

2.1.2 Employees of the Central Bank of Kenya, Committee Members, Board Members and
their relatives (spouse and children) or any category of persons specified in Section 33
of the Public Procurement and Disposal Act (the Act) are not eligible to participate
in the Tender.

2.1.3 Tenderers shall provide the qualification information statement that the Tenderer
(including all members of a joint venture and subcontractors) is not associated, or have
been associated in the past, directly or indirectly, with a firm or any of its affiliates
which have been engaged by the Central Bank of Kenya to provide consulting services
for the preparation of the design, specifications, and other documents to be used for the
procurement of the goods under this Invitation for Tenders.

2.1.4 Tenderers involved in corrupt or fraudulent practices or debarred from participating in

public procurement in Kenya or any other jurisdiction shall not be eligible to participate
in the Tender.

2.2 Eligible Goods

2.2.1 All the currency banknotes to be supplied under the contract shall have their origin in
eligible source countries.

2.2.2 For purposes of this clause, origin means the place where the banknotes are produced.

2.2.3 The origin of the goods is distinct from the nationality of the Tenderer and shall be
treated as thus in the evaluation of the Tender.

2.3 Cost of Tendering

2.3.1 The Tenderer shall bear all costs associated with the preparation and submission of its
Tender, and the Central Bank of Kenya, will in no case be responsible or liable for those
costs, regardless of the conduct or outcome of the Tendering process.
2.3.2 The price to be charged for the Tender document shall not exceed KES 5,000.00
2.3.3 All firms found capable of performing the contract satisfactorily in accordance with the
set prequalification criteria shall be prequalified.

2.4. The Tender Document

2.4.1 The Tender document comprises the documents listed below and addenda issued in
accordance with clause 2.6 of these instructions to Tenderers

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 (i) Invitation to Tender
(ii) Instructions to Tenderers
(iii) General Conditions of Contract
(iv) Special Conditions of Contract
(v) Schedule of requirements
(vi) Technical Specifications
(vii) Tender Form and Price Schedules
(viii) Tender Security Form
(ix) Contract Form
(x) Performance Security Form
(xi) Bank Guarantee for Advance Payment Form
(xii) Manufacturers Authorization Form
(xiii) Confidential Business Questionnaire Form

2.4.2 The Tenderer is expected to examine all instructions, forms, terms, and specifications
in the Tender documents. Failure to furnish all information required by the Tender
documents or to submit a Tender not substantially responsive to the Tender documents
in every respect will be at the Tenderers risk and may result in the rejection of its
Tender.

2.5 Clarification of Tender Documents

2.5.1 A prospective Tenderer making inquiries of the Tender documents may notify the
Central Bank of Kenya in writing at the address indicated in the invitation for Tenders.
The Central Bank of Kenya will respond in writing to any request for clarification of
the Tender documents, which it receives not later than seven (7) days prior to the
deadline for the submission of Tenders, prescribed by the Central Bank of Kenya.
Written copies of the Banks response (including an explanation of the query but
without identifying the source of inquiry) will be sent to all prospective Tenderers that
have received the Tender document.

2.5.2 The Central Bank of Kenya shall reply to any clarifications sought by the Tenderer
within three (3) days of receiving the request to enable the Tenderer to make timely
submission of its Tender.

2.6 Amendment of Tender Documents

2.6.1 At any time prior to the deadline for submission of Tender, the Central Bank of Kenya,
for any reason, whether at its own initiative or in response to a clarification requested
by a prospective Tenderer, may modify the Tender documents by issuing an addendum.

2.6.2 All prospective Tenderers that have obtained the Tender documents will be notified of
the amendment in writing and the amendment will be binding on them.

2.6.3 In order to allow prospective Tenderers reasonable time in which to take the amendment
into account in preparing their Tenders, the Central Bank of Kenya, at its discretion,
may extend the deadline for the submission of Tenders.

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2.7 Language of Tender

2.7.1 The Tender prepared by the Tenderer, as well as all correspondence and documents
relating to the Tender exchanged between the Tenderer and the Central Bank of Kenya,
shall be written in the English language, and any printed literature furnished by the
Tenderer may be written in another language provided they are accompanied by an
accurate English translation of the relevant passages in which case, for purposes of
interpretation of the Tender, the English translation shall govern.

2.8 Documents Comprising the Tender

2.8.1 The Tender prepared by the Tenderers shall comprise the following components.
(a) a Tender Form and a Price Schedule completed in accordance with paragraph
2.9, 2.10 and 2.11 below
(b) documentary evidence established in accordance with paragraph 2.1 that the
Tenderer is eligible to Tender and is qualified to perform the contract if its
Tender is accepted;
(c) documentary evidence established in accordance with paragraph 2.2 that the
goods and ancillary services to be supplied by the Tenderer are eligible goods
and services and conform to the Tender documents; and
(d) Tender security furnished in accordance with paragraph 2.14

2.9 Tender Form

2.9.1 The Tenderer shall complete the Form of Tender and the appropriate Price Schedule
furnished in the tender documents, indicating the products to be supplied and brief
description, their country of origin, quantity, and prices.

2.10 Tender Prices

2.10.1 The Tenderer shall indicate on the appropriate Price Schedule the unit prices where
applicable and total Tender price of the products it proposes to supply under the
contract.

2.10.2 Prices indicated on the Price Schedule shall include all costs including taxes,
insurances and delivery to the premises of the Central Bank of Kenya.

2.10.3 Prices quoted by the Tenderer shall remain fixed during the Tenders performance of
the contract. A Tender submitted with an adjustable price quotation will be treated as
non-responsive and will be rejected, pursuant to paragraph 2.22 unless otherwise
agreed by the parties.

2.10.4 The validity period of the tender shall be 60 days from the date of opening of the
tender.

2.11 Tender Currency

2.11.1 Prices shall be quoted in Kenya Shillings unless otherwise specified in the Appendix to
Instructions to Tenderers.

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2.12 Tenderers Eligibility and Qualifications

2.12.1 Pursuant to paragraph 2.1 the Tenderer shall furnish, as part of its tender, documents
establishing the Tenderers eligibility to Tender and its qualifications to perform the
contract if its Tender is accepted.

2.12.2 The documentary evidence of the Tenderers eligibility to Tender shall establish to
the Central Bank of Kenyas satisfaction that the Tenderer, at the time of submission
of its Tender, is from an eligible source country as defined under paragraph 2.1

2.12.3 The documentary evidence of the Tenderers qualifications to perform the contract if
its Tender is accepted shall be established to the Central Bank of Kenyas satisfaction;

(a) that, in the case of a Tenderer offering to print and deliver new design currency
banknotes under the contract which the Tenderer did not manufacture or otherwise
print, the Tenderer has been duly authorized by the Manufacturer or printer to
supply the products.
(b) that the Tenderer has the financial, technical, and production capability necessary
to perform the contract;

2.13 Goods Eligibility and Conformity to Tender Document

2.13.1 Pursuant to paragraph 2.2 of this section, the Tenderer shall furnish, as part of its
Tender documents establishing the eligibility and conformity to the Tender documents
of all printed banknotes which the Tenderer proposes to supply under the contract.

2.13.2 The documentary evidence of the eligibility of the goods shall consist of a statement
in the Price Schedule of the country of origin of the goods and services offered which
shall be confirmed by a certificate of origin issued at the time of shipment.

2.13.3 The documentary evidence of conformity of the new design banknotes to the Tender
documents may be in the form of literature, drawings, and data, and shall consist of:

a) a detailed description of the essential technical and characteristics of the new

design banknotes
b) a list giving full particulars, including available source and current prices of
spare parts, special tools, etc., necessary for the proper and continuing
functioning of the goods for a period of two (2) years, following commencement
of the use of the goods by the Central Bank of Kenya; and
c) a clause-by-clause commentary on the Central Bank of Kenyas Technical
Specifications demonstrating substantial responsiveness of the goods to those
specifications, or a statement of deviations and exceptions to the provisions of
the Technical Specifications.

2.13.4 For purposes of the commentary to be furnished pursuant to paragraph 2.13.3(c)

above, the Tenderer shall note that standards for workmanship, material, and tendered
merchandise, as well as references to brand names or catalogue numbers designated
by the Central Bank of Kenya in its Technical Specifications, are intended to be
descriptive only and not restrictive. The Tenderer may substitute alternative standards,
brand names, and/or catalogue numbers in its Tender, provided that it demonstrates to

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 the Central Banks satisfaction that the substitutions ensure substantial equivalence to
those designated in the Technical Specifications.

2.14 Tender Security

2.14.1 The Tenderer shall furnish, as part of its Tender, a Tender security for the amount and
form specified in the Appendix to Instructions to Tenderers.
2.14.2 The Tender security shall be in the amount of 0.5 - 2 per cent of the tender price.
2.14.3 The tender security is required to protect the Central Bank of Kenya against the risk
of Tenderers conduct which would warrant the securitys forfeiture, pursuant to
paragraph 2.14.7
2.14.4 The tender security shall be denominated in Kenya Shillings or in another freely
convertible currency, and shall be in the form of a bank guarantee or a bank draft
issued by a reputable bank located in Kenya or abroad, or a guarantee issued by a
reputable insurance company in the form provided in the tender documents or another
form acceptable to the Central Bank of Kenya and valid for thirty (30) days beyond
the validity of the tender.
2.14.5 Any tender not secured in accordance with paragraph 2.14.1 and 2.14.3 will be
rejected by the Central Bank of Kenya as non-responsive, pursuant to paragraph 2.22
2.14.6 Unsuccessful Tenderers tender security will be discharged or returned as promptly as
possible as but not later than thirty (30) days after the expiration of the period of tender
validity prescribed by the Central Bank of Kenya.
2.14.7 The successful Tenderers tender security will be discharged upon the tenderer signing
the contract, pursuant to paragraph 2.28 and furnishing the performance security,
pursuant to paragraph 2.29.
2.14.8 The Tender security may be forfeited:
if a Tenderer withdraws its Tender during the period of Tender validity specified
by the Central Bank of Kenya on the Tender Form; or
in the case of a successful Tenderer, if the Tenderer fails:
i) to sign the contract in accordance with paragraph 2.28
ii) to furnish performance security in accordance with paragraph 2.29
If the Tenderer rejects correction of an arithmetic error in the Tender.

2.15 Validity of Tenders

2.15.1 Tender shall remain valid for 150 days or as specified in the Invitation to Tender after
the date of Tender opening prescribed by the Central Bank of Kenya, pursuant to
paragraph 2.20. A Tender valid for a shorter period shall be rejected by the Central
Bank of Kenya as non-responsive.

2.15.2 In exceptional circumstances, the Central Bank of Kenya may solicit the Tenderers
consent to an extension of the period of validity. The request and the responses thereto
shall be made in writing. The tender security provided under paragraph 2.14 shall also
be suitably extended. A tenderer may refuse the request without forfeiting its tender

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 security. A tenderer granting the request will not be required nor permitted to modify
its tender.

2.16 Format and Signing of Tender

2.16.1 The Tenderer shall prepare two sets of the Tender, clearly marking one ORIGINAL
TENDER and the other COPY OF TENDER, as appropriate. In the event of any
discrepancy between them, the original shall prevail.

2.16.2 The original and all copies of the Tender shall be typed or written in indelible ink and
shall be signed by the Tenderer or a person or persons duly authorized to bind the
Tenderer to a contract. All pages of the Tender, except for un-amended printed
literature, shall be initialled by the person or persons signing the Tender.

2.16.3 The Tender shall have no interlineations, erasures, or overwriting except as necessary
to correct errors made by the Tenderer, in which case such corrections shall be
initialled by the person or persons signing the Tender.

2.17 Sealing and Marking of Tenders

2.17.1 The Tenderer shall seal the original and each copy of the Tender in separate envelopes,
duly marking the envelopes as ORIGINAL and COPY. The envelopes shall then
be sealed in an outer envelope.

2.17.2 The inner and outer envelopes shall:-

a. Be addressed to the Central Bank of Kenya at the address given on the Invitation
to Tender.

b. Bear, tender number and name in the Invitation for Tenders and the words, DO
NOT OPEN BEFORE WEDNESDAY NOVEMBER 22, 2017 AT 1030 HRS
(EAT).

2.17.3 The inner envelopes shall also indicate the name and address of the Tenderer to enable
the Tender to be returned unopened in case it is declared late or the tender is
cancelled after submission but before the tender opening.

2.17.4 If the outer envelope is not sealed and marked as required by paragraph 2.17.2, the
Central Bank of Kenya will assume no responsibility for the Tenders misplacement
or premature opening.

2.18 Deadline for Submission of Tenders

2.18.1 Tenders must be received by the Central Bank of Kenya at the address specified under
paragraph 2.17.2 not later 1030 HRS EAST AFRICAN TIME (EAT) on
WEDNESDAY NOVEMBER 22, 2017.

2.18.2 The Central Bank of Kenya may, at its discretion, extend this deadline for the
submission of Tenders by amending the Tender documents in accordance with
paragraph 2.6, in which case all rights and obligations of the Central Bank of Kenya

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 and candidates previously subject to the deadline will therefore be subject to the
deadline as extended.

2.18.3 Bulky Tenders which will not fit in the Tender box shall be received by the Central
Bank of Kenya as provided for in the Appendix.

2.19 Modification and Withdrawal of Tenders

2.19.1 The Tenderer may modify or withdraw its Tender after the Tenders submission,
provided that written notice of the modification, including substitution or withdrawal
of the Tenders, is received by the Central Bank of Kenya prior to the deadline
prescribed for submission of Tenders.

2.19.2 The Tenderers modification or withdrawal notice shall be prepared, sealed, marked,
and dispatched in accordance with the provisions of paragraph 2.17. A withdrawal
notice may also be sent by cable, telex but followed by a signed confirmation copy,
postmarked not later than the deadline for submission of Tenders.

2.19.3 No Tender may be modified after the deadline for submission of Tenders.

2.19.4 No Tender may be withdrawn in the interval between the deadline for submission of
Tenders and the expiration of the period of Tender validity specified by the Tenderer
on the Tender Form. Withdrawal of a Tender during this interval may result in the
Tenderers forfeiture of its Tender security, pursuant to paragraph 2.14.8

2.19.5 The Central Bank of Kenya may at any time terminate procurement proceedings
before contract award and shall not be liable to any person for the termination.

2.19.6 The Central Bank of Kenya shall give prompt notice of the termination to the tenderers
and on request give its reasons for termination within 14 days of receiving the request
from any tenderer.

2.20 Opening of Tenders

2.20.1 The Central Bank of Kenya will open all Tenders in the presence of Tenderers
representatives who choose to attend, at 1030 HRS EAT, on WEDNESDAY
NOVEMBER 22, 2017 and in the following location.

The Presentation Room

Sixth Floor, Central Bank of Kenya,
Haile Selassie Avenue,
Nairobi

The Tenderers representatives who are present shall sign a Tender opening register
evidencing their attendance.

2.20.2 The Tenderers names, Tender modifications or withdrawals, Tender prices,

discounts and the presence or absence of requisite Tender security and such other
details will be announced at the opening.

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2.20.3 The Central Bank of Kenya will prepare minutes of the Tender opening.

2.21 Clarification of Tenders

2.21.1 To assist in the examination, evaluation and comparison of Tenders the Central
Bank of Kenya may, at its discretion, ask the Tenderer for a clarification of any
aspect of its Tender. The request for clarification and the response shall be in
writing, and no change in the prices or substance of the Tender shall be sought,
offered, or permitted.

2.21.2 Any effort by the Tenderer to influence the Central Bank of Kenya in the Tender
evaluation, Tender comparison or contract award decisions may result in the
rejection of the Tenderers Tender.

2.22 Preliminary Examination and Responsiveness

2.22.1 The Central Bank of Kenya will examine the tenders to determine whether they are
complete, whether any computational errors have been made, whether required
sureties have been furnished, whether the documents have been properly signed,
and whether the tenders are generally in order.

2.22.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy
between the unit price and the total price that is obtained by multiplying the unit
price and quantity, the unit price shall prevail, and the total price shall be corrected.
If the candidate does not accept the correction of the errors, its Tender will be
rejected, and its Tender security may be forfeited. If there is a discrepancy between
words and figures the amount in words will prevail.

2.22.3 The Central Bank of Kenya may waive any minor informality or non-conformity or
irregularity in a Tender which does not constitute a material deviation, provided
such waiver does not prejudice or effect the relative ranking of any Tenderer.

2.22.4 Prior to the detailed evaluation, pursuant to paragraph 2.23 the Central Bank of
Kenya will determine the substantial responsiveness of each Tender to the Tender
documents. For purposes of these paragraphs, a substantially responsive Tender is
one, which conforms to all the terms and conditions of the Tender documents
without material deviations. The Central Bank of Kenyas determination of a
Tenders responsiveness is to be based on the contents of the Tender itself without
recourse to extrinsic evidence.

2.22.5 If a Tender is not substantially responsive, it will be rejected by the Central Bank
of Kenya and may not subsequently be made responsive by the Tenderer by
correction of the non-conformity.

2.23 Conversion to Single Currency

2.23.1 Where other currencies are used, the Central Bank of Kenya will convert those
currencies to Kenya Shillings using the selling exchange rate on the date of Tender
closing provided by the Central Bank of Kenya.

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2.24 Evaluation and Comparison of Tenders

2.24.1 The Central Bank of Kenya will evaluate and compare the Tenders which have been
determined to be substantially responsive, pursuant to paragraph 2.22

2.24.2 The tender evaluation committee shall evaluate the Tender within 30 days of the
validity period from the date of opening the tender.

2.24.3 A Tenderer who gives false information in the Tender document about its
qualification or who refuses to enter into a contract after notification of contract
award shall be considered for debarment from participating in future public
procurement.

2.25 Preference

2.25.1 Preference where allowed in the evaluation of Tenders shall not exceed 15%

2.26 Contacting the Central Bank of Kenya

2.26.1 Subject to paragraph 2.21 no Tenderer shall contact the Central Bank of Kenya on
any matter related to its Tender, from the time of the Tender opening to the time the
contract is awarded.

2.26.2 Any effort by a Tenderer to influence the Central Bank of Kenya in its decisions on
Tender, evaluation, Tender comparison, or contract award may result in the
rejection of the Tenderers Tender.

2.27 Award of Contract

Post-Qualification
2.27.1 In the absence of pre-qualification, the Central Bank of Kenya will determine to its
satisfaction whether the Tenderer that is selected as having submitted the lowest
evaluated responsive Tender is qualified to perform the contract satisfactorily.

2.27.2 The determination will take into account the Tenderers financial, technical, and
production capabilities. It will be based upon an examination of the documentary
evidence of the Tenderers qualifications submitted by the Tenderer, pursuant to
paragraph 2.12.3 as well as such other information as the Central Bank of Kenya
deems necessary and appropriate.

2.27.3 An affirmative determination will be a prerequisite for award of the contract to the
Tenderer. A negative determination will result in rejection of the Tenderers Tender,
in which event the Central Bank of Kenya will proceed to the next lowest evaluated
Tender to make a similar determination of that Tenderers capabilities to perform
satisfactorily.

Award Criteria
2.27.4 The Central Bank of Kenya will award the contract to the successful Tenderer(s)
whose Tender has been determined to be substantially responsive and has been

Page 16 of 57
 determined to be the lowest evaluated Tender, provided further that the Tenderer is
determined to be qualified to perform the contract satisfactorily.

Central Bank of Kenyas Right to Vary Quantities

2.27.5 The Central Bank of Kenya reserves the right at the time of contract award to
increase or decrease the quantity of goods originally specified in the Schedule of
requirements without any change in unit price or other terms and conditions

Central Bank of Kenyas Right to Accept or Reject Any or All Tenders

2.27.6 The Central Bank of Kenya reserves the right to accept or reject any Tender, and to
annul the Tendering process and reject all Tenders at any time prior to contract
award, without thereby incurring any liability to the affected Tenderer or Tenderer
of the grounds for the Central Bank of Kenyas action.

2.28 Notification of Award

2.28.1 Prior to the expiration of the period of Tender validity, the Central Bank of Kenya
will notify the successful Tenderer in writing that its Tender has been accepted.

2.28.2 The notification of award will signify the formation of the Contract but will have to
wait until the contract is finally signed by both parties.

2.28.3 Upon the successful Tenderers furnishing of the performance security pursuant to
paragraph 2.28, the Central Bank of Kenya will promptly notify each unsuccessful
Tenderer and will discharge its tender security, pursuant to paragraph 2.14.

2.29 Signing of Contract

2.29.1 At the same time as the Central Bank of Kenya notifies the successful tenderer
that its tender has been accepted, the Central Bank of Kenya will send the tenderer
the Contract Form provided in the tender documents, incorporating all agreements
between the parties.

2.29.2 The parties to the contract shall have it signed within 30 days from the date of
notification of contract award unless there is an administrative review request.

2.29.3 Within thirty (30) days of receipt of the Contract Form, the successful tenderer
shall sign and date the contract and return it to the Central Bank of Kenya.

2.30 Performance Security

2.30.1 Within Thirty (30) days of the receipt of notification of award from the Central
Bank of Kenya, the successful Tenderer shall furnish the performance security in
accordance with the Conditions of Contract, in the Performance Security Form
provided in the Tender documents, or in another form acceptable to the Central
Bank of Kenya.

2.30.2 Failure of the successful Tenderer to comply with the requirements of paragraph
2.27 or 2.28 shall constitute sufficient grounds for the annulment of the award and

Page 17 of 57
 forfeiture of the Tender security, in which event the Central Bank of Kenya may
make the award to the next lowest evaluated Tenderer or call for new Tenders.

2.31 Corrupt or Fraudulent Practices

2.31.1 The Central Bank of Kenya requires that tenderers observe the highest standard of
ethics during the procurement process and execution of contracts. When used in the
present regulations, the following terms are defined as follows;

i. corrupt practice means the offering, giving, receiving, or soliciting of

anything of value to influence the action of a public official in the procurement
process or in contract execution; and

ii. fraudulent practice means a misrepresentation of facts in order to influence

a procurement process or the execution of a contract to the detriment of the
Procuring entity, and includes collusive practice among tenderer (prior to or
after tender submission) designed to establish tender prices at artificial non-
competitive levels and to deprive the Procuring entity of the benefits of free
and open competition;

2.31.2 The Central Bank of Kenya will reject a proposal for award if it determines that the
tenderer recommended for award has engaged in corrupt or fraudulent practices in
competing for the contract in question.

2.31.3 Further a Tenderer who is found to have indulged in corrupt or fraudulent practices
risks being debarred from participating in public procurement in Kenya.

Page 18 of 57
APPENDIX TO INSTRUCTIONS TO TENDERERS

The following information regarding the particulars of the Tender shall complement,
supplement or amend the provisions of the instructions to Tenderers. Wherever there is a
conflict between the provision of the instructions to Tenderers and the provisions of the
appendix, the provisions of the appendix herein shall prevail over those of the instructions to
Tenderers.

Instructions To Particulars Of Appendix To Instructions To Tenders

Tenderers
Reference
2.1.3 This is not applicable
2.2.1 Origin means where the banknotes are printed
2.2.2 The production process referred to in this clause means the place where
the banknotes are printed or the covert feature and associated sensors are
produced
2.3.2 The Tender shall be offered free of charge only to pre-qualified Tenderers
2.3.3 Firms invited to tender in this process have already been prequalified.
Only companies pre-qualified under tender CBK/043/2013-2014 have
been invited in this tender in accordance with the provisions of that tender.
2.5.1 The Bank will respond in writing through any of the channels provided to
any request for clarification of the Tender documents, which it receives
not later than seven (7) working days prior to the deadline for the
submission of Tenders.
2.5.2 The Bank shall reply to any clarifications sought by the tenderer within 3
working days of receiving the request.
2.8.1 All pages of the bid MUST be serialised by the Tenderer
2.10.2 Prices indicated on the Price Schedule shall be entered separately as
provided in the lots in the following manner:
(i) The price quoted for printed and delivered banknotes shall be all
inclusive as required in the tender document
(ii) The price shall be quoted Delivered Duty Paid (DDP), CBK Nairobi
in accordance with the Incoterms, 2010.
The Central Bank of Kenya is the consignee and importer on record for
the goods, with all duties and levies where applicable to be settled by the
contracted supplier.
2.10.4 The validity period of the tender shall be 150 days from the date of
opening of the tender.
2.11.1 Prices shall be quoted in this tender shall be in United States Dollars
2.12.1 Eligibility already determined during the prequalification process hence
not applicable.
2.12.2 Not applicable
2.12.3 (a) This is not applicable. Tenderers are expected to be the ones undertaking
the printing process as described in this tender.
2.12.3 (b) Tenderers financial capability will be evaluated from the provided
financial statements not be older than 2014. The Tenderers are expected
to provide certified copies of the last three years audited financial
statements for this evaluation to be done.

Page 19 of 57
Instructions To Particulars Of Appendix To Instructions To Tenders
Tenderers
Reference
2.13.3 (b) This is not applicable to this tender. The banknotes should comply with
the specifications under Section V of this tender document.
2.13.4 Only applicable to the extent detailed under the Technical Specifications.
No substitution is allowed under this tender.
2.14.1 The Tenderers shall provide with its Tender a Tender Security of United
States Dollars Five Hundred Only (USD 500,000).
2.14.4 Tender Security shall be issued ONLY by a reputable bank located in
Kenya or abroad. The security shall remain valid for thirty (30) days
beyond the validity of the tender. The Tender Security shall be as per the
form specified in the Appendix to Instructions to Tenderers.
2.15.1 Tenders shall remain valid for 150 days from the date of opening of the
tender.
2.17.1 Tenderers may, if they so wish, to submit their tenders in soft copy in
addition to the original and copy as required of the tender document. In
case of discrepancy, the original submitted Tender document shall always
prevail.
2.18.3 Bulky Tenders that do not fit in the Tender box will be received in the
presentation room on 6th Floor CBK Building at the date and time of
closing/opening the Tender.
2.19.2 A withdrawal notice should be made in writing and sent to CBK in any
of the communication formats prescribed in this Tender document.
2.19.5 CBK may terminate or cancel procurement proceedings in accordance
with Section 63 of the Public Procurement and Asset Disposal Act, 2015.
2.22.1 Confirmation that the Tender has been signed by the person lawfully
authorized to do so should be done through a Letter of Attorney from the
Tenderer.
2.22.2 In accordance with Section 82 of the Public Procurement and Asset
Disposal Act, the tender sum as submitted and read out during the tender
opening shall be absolute and final and shall not be the subject of
correction, adjustment or amendment in any way by any person or entity.
2.22.3 This is not applicable. Tenderers are required to comply with the
requirements of this Tender document.
2.23.1 Not applicable since standard currency for this Tender is the United States
Dollar.
2.24.1 Evaluation will be per carried out in lots as specified in the Tender
document.
The substantial responsiveness of a tender shall include a positive
consideration quoted as the tender price.
2.24.3 CBK may consider actions such as reporting for debarment, any Tenderer
who gives false information in the Tender document about its
qualification or who refuses to enter into a contract after notification of
contract award.
2.25.1 Preference shall be as provided in PART XIIPREFERENCES AND
RESERVATION of the Public Procurement and Asset Disposal Act.
It is incumbent upon Tenderers to demonstrate that their bids qualify to
be granted a preference under the law.

Page 20 of 57
Instructions To Particulars Of Appendix To Instructions To Tenders
Tenderers
Reference
2.27.1 All Tenderers were subjected and qualified through a pre-qualification
process. CBK will however subject the winning tenderer(s) to a due
diligence visit to determine ability to perform the contract satisfactorily.
2.28.2 A contract will be formalised upon signing by both parties.
2.29.3 Within fourteen (14) days of receipt of the Contract Form, the successful
Tenderers shall sign and date the contract and return it to the Central Bank
of Kenya.

A written contract shall be entered within the Tender validity period but
not before fourteen days have elapsed following award notification as
provided in Section 135 (3) of the Public Procurement and Disposal Act,
2015.
2.30.1 Performance security shall be 10 per cent of the Tender sum and shall be
issued by a local bank in accordance with Section 144(4) of the Public
Procurement and Asset Disposal Act.
2.31.1 A Tenderer shall sign a declaration that he has and will not be involved in
corrupt or fraudulent practices. For clarity:-
i. corrupt practice means the offering, giving, receiving, or
soliciting of anything of value to influence the action of a public
official in the procurement process or in contract execution; and

ii. fraudulent practice means a misrepresentation of facts in order

to influence a procurement process or the execution of a contract
to the detriment of the Central Bank of Kenya, and includes
collusive practice among Tenderer (prior to or after tender
submission) designed to establish tender prices at artificial non-
competitive levels and to deprive the Central Bank of Kenya of
the benefits of free and open competition.
i. The winning tenderer(s) will be expected to make arrangements
for collection of origination files, materials and wet ink samples
from the CBK Head Office in Nairobi and ensure safe delivery to
its printing works.
ii. The winning tenderer(s) will be expected to update the origination
materials and seek approval thereof before actual production can
commence. Any changes in dates or signatures as specified by
CBK shall not warrant price changes to this Tender.

Page 21 of 57
SECTION III: GENERAL CONDITIONS OF CONTRACT

Table of Clauses

Page
3.1 Definitions.. 24
3.2 Application. 24
3.3 Country of Origin 24
3.4 Standards. 24
3.5 Use of Contract Documents and Information.. 24
3.6 Patent Rights 25
3.7 Performance Security.. 25
3.8 Inspection and Tests. 25
3.9 Packing. 26
3.10 Delivery and Documents. 26
3.11 Insurance .. 26
3.12 Payment. 26
3.13 Price.. 26
3.14 Assignments. 27
3.15 Sub contracts 27
3.16 Termination for Default 27
3.17 Liquidated Damages.. 27
3.18 Resolution of Disputes.. 28
3.19 Language and law. 28
3.20 Force Majeure .. 28

Page 22 of 57
 SECTION III - GENERAL CONDITIONS OF CONTRACT

3.1 Definitions

3.1.1 In this Contract, the following terms shall be interpreted as indicated:-

(a) The Contract means the agreement entered into between the Central Bank of
Kenya and the Tenderer, as recorded in the Contract Form signed by the parties,
including all attachments and appendices thereto and all documents incorporated by
reference therein.
(b) The Contract Price means the price payable to the Tenderer under the Contract
for the full and proper performance of its contractual obligations
(c) The Goods means all of the currency banknotes, covert sensor readers, desktop
covert readers and public education material which the Tenderer is required to
supply to the Central Bank of Kenya under the Contract.
(d) The Central Bank of Kenya means the organization purchasing the Goods under
this Contract.
(e) The Tenderer means the individual or firm supplying the Goods under this
Contract.

3.2 Application

3.2.1 These General Conditions shall apply in the Contract made by the Central Bank of
Kenya for printing and supply of new design Kenya Currency banknotes to the extent
that they are not superseded by provisions of other part of contract.

3.3 Country of Origin

3.3.1 For purposes of this clause, Origin means the place where the Goods were mined,
grown or produced.

3.3.2 The origin of Goods and Services is distinct from the nationality of the Tenderer and
will be treated thus in the evaluation of the Tender.

3.4 Standards
3.4.1 The Goods supplied under this Contract shall conform to the standards mentioned in
the Technical Specifications.

3.5 Use of Contract Documents and Information

3.5.1 The Candidate shall not, without the Central Bank of Kenyas prior written consent,
disclose the Contract, or any provision therefore, or any specification, plan, drawing,
pattern, sample, or information furnished by or on behalf of the Central Bank of Kenya
in connection therewith, to any person other than a person employed by the Tenderer
in the performance of the Contract.

3.5.2 The Tenderer shall not, without the Central Bank of Kenyas prior written consent,
make use of any document or information enumerated in paragraph 3.5.1 above

3.5.3 Any document, other than the Contract itself, enumerated in paragraph 3.5.1 shall
remain the property of the Central Bank of Kenya and shall be returned (all copies) to

Page 23 of 57
 the Central Bank of Kenya if so required on completion of the Tenderers performance
under the Contract if so required by the Central Bank of Kenya

3.6 Patent Rights

3.6.1 The Tenderer shall indemnify the Central Bank of Kenya against all third-party claims
of infringement of patent, trademark, or industrial design rights arising from use of the
Goods or any part thereof in the Procuring entitys country.

3.7 Performance Security

3.7.1 Within thirty (30) days of receipt of the notification of Contract award, the successful
Tenderer shall furnish to the Central Bank of Kenya the performance security where
applicable in the amount specified in the Special Conditions to the Contract.

3.7.2 The proceeds of the performance security shall be payable to the Central Bank of Kenya
as compensation for any loss resulting from the Tenderers failure to fulfil its
obligations under the Contract.

3.7.3 The performance security shall be denominated in the currency of the Contract, or in a
freely convertible currency acceptable to the Central Bank of Kenya and shall be in the
form of a bank guarantee or an irrevocable letter of credit issued by a reputable bank
located in Kenya or abroad, acceptable to the Procuring entity, in the form provided in
the tender documents.

3.7.4 The performance security will be discharged by the Central Bank of Kenya and returned
to the Candidate not later than thirty (30) days following the date of completion of the
Tenderers performance obligations under the Contract, including any warranty
obligations, under the Contract

3.8 Inspection and Tests

3.8.1 The Central Bank of Kenya or its representative shall have the right to inspect and/or
to test the currency banknotes being printed to confirm their conformity to the Contract
specifications. The Central Bank of Kenya shall notify the Tenderer in writing in a
timely manner, of the identity of any representatives retained for these purposes.

3.8.2 The inspections and tests may be conducted in the premises of the Tenderer or its
subcontractor(s), at point of delivery, and/or at the Goods final destination. If
conducted on the premises of the tenderer or its subcontractor(s), all reasonable
facilities and assistance, including access to drawings and production data, shall be
furnished to the inspectors at no charge to the Central Bank of Kenya.

3.8.3 Should any inspected or tested currency banknotes samples fail to conform to the
Specifications, the Central Bank of Kenya may reject the samples, and the Tenderer
shall either replace the rejected currency banknotes or make alterations necessary to
make specification requirements free of costs to the Central Bank of Kenya.

3.8.4 The Central Bank of Kenyas right to inspect test and where necessary, reject the
currency banknotes after delivery shall in no way be limited or waived by reason of the

Page 24 of 57
 banknote samples having previously been inspected, tested and passed by the Central
Bank of Kenya or its representative prior to the delivery.

3.8.5 Nothing in paragraph 3.8 shall in any way release the Tenderer from any warranty or
other obligations under this Contract.

3.9 Packing

3.9.1 The Tenderer shall provide such packing and packaging of the banknotes as is required
to prevent their damage or deterioration during transit to their final destination, as
indicated in the Contract.

3.9.2 The packing, marking, and documentation within and outside the packages shall
comply strictly with such special requirements as shall be expressly provided for in the
Contract

3.10 Delivery and Documents

3.10.1 Delivery of the currency banknotes shall be made by the Tenderer in accordance with
the terms specified by Central Bank of Kenya in its Schedule of Requirements and the
Special Conditions of Contract.

3.11 Insurance

3.11.1 The currency banknotes supplied under the Contract shall be fully insured by the
Tenderer against loss or damage incidental to manufacturer or acquisition,
transportation, storage, and delivery in the manner specified in the Special conditions
of contract.

3.12 Payment

3.12.1 The method and conditions of payment to be made to the Tenderer under this Contract
shall be specified in Special Conditions of Contract.

3.12.2 Payments shall be made promptly by the Central Bank of Kenya as specified in the
contract

3.13 Prices

3.13.1 Prices charged by the Tenderer for currency banknotes delivered and performed under
the Contract shall not, with the exception of any price adjustments authorized in
Special Conditions of Contract, vary from the prices quoted by the Tenderer in its
Tender.

3.13.2 Contract price variations shall not be allowed for contracts not exceeding one (1) year

3.13.3 Where contract price variation is allowed, the variation shall not exceed 10% of the
original contract price.

Page 25 of 57
3.13.4 Price variation requests shall be processed by the Central Bank of Kenya within 30
days of receiving the request.

3.14. Assignment

The Tenderer shall not assign, in whole or in part, its obligations to perform under this
Contract, except with the Central Bank of Kenyas prior written consent

3.15. Subcontracts

3.15.1 The Tenderer shall notify the Central Bank of Kenya in writing of all subcontracts
awarded under this Contract if not already specified in the Tender. Such notification,
in the original Tender or later, shall not relieve the Tenderer from any liability or
obligation under the Contract

3.16. Termination for Default

3.16.1 The Central Bank of Kenya may, without prejudice to any other remedy for breach of
Contract, by written notice of default sent to the Tenderer, terminate this Contract in
whole or in part
(a) if the Tenderer fails to deliver any or all of the fully printed banknotes within
the period specified in the Contract, or within any extension thereof granted
by the Central Bank of Kenya
(b) if the Tenderer fails to perform any other obligation(s) under the Contract
(c) if the Tenderer, in the judgment of the Central Bank of Kenya has engaged
in corrupt or fraudulent practices in competing for or in executing the
Contract
3.16.2 In the event the Central Bank of Kenya terminates the Contract in whole or in part, it
may procure, upon such terms and in such manner as it deems appropriate, currency
banknotes similar to those undelivered, and the Tenderer shall be liable to the Central
Bank of Kenya for any excess costs for such similar product.

3.17. Liquidated Damages

3.17.1 If the Tenderer fails to deliver and/or supply any or all of the items within the period(s)
specified in the contract, the Central Bank of Kenya shall, without prejudice to its other
remedies under the contract, deduct from the contract prices liquidated damages sum
equivalent to 0.5% of the delivered price of the delayed items up to a maximum
deduction of 10% of the delayed goods. After this the Tenderer may consider
termination of the contract.

3.18. Resolution of Disputes

3.18.1 The Central Bank of Kenya and the Tenderer shall make every effort to resolve
amicably by direct informal negotiation any disagreement or dispute arising between
them under or in connection with the contract

3.18.2 If, after thirty (30) days from the commencement of such informal negotiations both
parties have been unable to resolve amicably a contract dispute, either party may

Page 26 of 57
 require that the dispute be referred for resolution to the formal mechanisms specified
in the Standard Condition of Contract (SCC).

3.19. Language and Law

3.19.1 The language of the contract and the law governing the contract shall be English
language and the Laws of Kenya respectively unless otherwise stated.

3.20. Force Majeure

3.20.1 The Tenderer shall not be liable for forfeiture of its performance security or
termination for default if and to the extent that its delay in performance or other failure
to perform its obligations under the Contract is the result of an event of Force Majeure.

Page 27 of 57
 SECTION IV - SPECIAL CONDITIONS OF CONTRACT

Notes on Special Conditions of Contract

4.1. Special Conditions of Contract (SCC) shall supplement the General Conditions of
Contract. Whenever there is a conflict, between the GCC and the SCC, the provisions
of the SCC herein shall prevail over these in the GCC.

4.2. Special conditions of contract as relates to the GCC.

REFERENCE SPECIAL CONDITIONS OF CONTRACT (SCC)

OF GCC
3.1.1 (b) The contract price should be a valid consideration expressed in
United States Dollars (USD)
3.1.1 (c) For the purpose of this tender, goods means currency banknotes,
covert sensor readers, desktop covert readers and public education
material.
3.3.1 Origin means the place where the banknotes are printed or the
public education materials are developed.
3.5.3 This shall include all other materials used in performance of this
tender.
3.6.1 The Bank has full ownership of the origination material to be used in
printing the banknotes. However, Tenderers should ensure that no
infringement of patents or trademarks occurs as a result of any
incorporated security feature or design amendments. In addition, the
winning Tenderer will transfer yield and surrender any claim of
ownership legal interest and intellectual property comprised in the
themes, designs concepts, images and material used and comprised
in the currency banknotes.
Any materials and information hereby presented remains highly
classified, to which the Tenderer covenants not to use for any other
purpose other than as required under this tender and they shall not
disclose to any other party where such disclosure will be required for
execution of this contract without authority from CBK.
3.7.1 Performance security shall be 10 per cent of the tender sum and in the
format provided in this document and shall be furnished within 30
days of notification of award
3.7.3 Performance security shall only be in the form of a Bank guarantee
or Letter of credit and denominated in United State Dollars.
3.8.1 Inspection and testing will not only target the printing process and
premises but could extend to the paper mills, security feature
manufacturing plants/premises and any other associated premises
that are a requirement for completion of the banknotes.

Inspection and tests prior to shipment of Goods and at final

acceptance are as follows:

i) CBK shall make a visit to the Supplier at intervals and stages to

be mutually agreed by the parties.

Page 28 of 57
REFERENCE SPECIAL CONDITIONS OF CONTRACT (SCC)
OF GCC
ii) Quality inspection shall be carried out by an identified
independent laboratory at the Suppliers own expense at intervals
to be mutually agreed.
iii) The independent laboratory shall submit an Inspection Certificate
directly to CBK. The Inspection Certificate shall detail the quality
control check for paper and printed banknotes.
iv) The banknote Supplier(s) shall also submit Quality Assurance
Certificate(s) to CBK in order to ensure that the banknotes are
manufactured in compliance with the Contract.
v) At the minimum, tests shall cover the following areas
Paper specifications
Paper properties
Technical banknote inspections
3.8.2 a) The inspections and tests may be conducted in the premises of the
Tenderer or any other appointed independent testing laboratory.
b) The laboratory of choice for uniformity will be UGRA,
Switzerland, unless any Tenderer has exceptional reasons not to
use it in which case CBK permission must be obtained.
3.8.3 Rules of replacement shall not only be limited to the sampled
products but even for defective currency discovered after delivery of
the banknotes.
3.9.2 The Bank emphasises on the need for strong and secure packaging
for all its banknotes. Detailed packaging specifications are given in
the technical requirements section of this tender.
3.10.1 i. The banknotes shall be delivered to the Central Bank of Kenya,
Nairobi DDP as specified under the Incoterms, 2010.
ii. All deliveries should be accompanied by necessary documents to
ensure ease of processing facilitation. They shall include but not
limited to goods packing lists, delivery notes, delivery invoice,
payment invoice, bill of lading, insurance documents.
iii. Winning Tenderer(s) shall make arrangements for delivery of the
covert feature with the supplier and shall ensure that the BPS
covert feature sensor readers and desktop covert sensor readers
shall be delivered and installed to CBK Branches in Nairobi,
Mombasa and Kisumu.
iv. There shall be Eight (8) BPS covert feature sensor readers
required for delivery and installation by machine vendors and ten
(10) desktop covert sensor readers
v. Deliveries shall be made only during the Central Bank of Kenyas
official working hours from Monday to Friday preferably before
1500HRS unless specific requests are made and granted in
advance. Public holidays do not form part of the CBKs official
working days.
3.11.1 Marine/Shipping insurance needs to be provided in accordance with
the Kenyan Law

Page 29 of 57
REFERENCE SPECIAL CONDITIONS OF CONTRACT (SCC)
OF GCC
3.12.1 i. Any down payments shall be made in accordance with the Public
Procurement and Asset Disposal Act of Kenya.
ii. Payment for deliveries shall be made upon delivery of required
goods.
3.13.2 Price adjustments are not provided in the Tender.
3.15 Sub-contracting part or whole of this Tender is NOT permissible
under this contract without express authority of the Central Bank of
Kenya.
3.17.1 If the Tenderer fails to deliver and/or supply any or all of the items
within the period(s) specified in the contract, the Central Bank of
Kenya shall, without prejudice to its other remedies under the
contract, deduct from the contract prices liquidated damages sum
equivalent to 0.5% of the delivered price of the delayed items up to a
maximum deduction of 10% of the delayed goods. After this the
Central Bank of Kenya may consider termination of the contract.
3.18.1 Resolution of disputes will be subject to the Laws of Kenya and in
the event that amicable resolution to a dispute is untenable, the
matter will be taken up through a court of law in Kenya for
resolution.
Any notice given by one party to the other pursuant to this contract
may be sent to other party by post or by fax or Email and confirmed
in writing to the other partys address specified.

A notice shall be effective when delivered or on the notices effective

date, whichever is later.

Page 30 of 57
 SECTION V - TECHNICAL SPECIFICATIONS

5.1 GENERAL

5.1.1 These specifications describe the basic requirements for newly printed Kenya currency
banknotes. Tenderers are requested to confirm that banknotes to be supplied shall
conform to the specifications.

5.1.2 Tenderers must indicate on the specifications sheets whether the printed banknotes
offered comply with each specific requirement.

5.1.3 All the dimensions and capacities of the currency banknotes to be supplied shall not be
less than those required in these specifications. Deviations from the basic requirements,
if any, shall be explained in detail in writing with the offer, with supporting data such
as calculation sheets, etc. The Central Bank of Kenya reserves the right to reject the
products, if such deviations shall be found critical to the use and operation of the
products.

5.1.4 The Tenderers are requested to present information along with their offers as follows:-
(i) Shortest possible delivery period of each product per denomination and lot.
(ii) The public education proposals.

5.2 AESTHETIC PARTICULARS

5.2.1 The new Kenya currency banknotes features a modern and securely designed
banknote to carry the aspirations of the people of Kenya. The banknotes theme
Kenya Reborn and Prosperity reflects the spirit of the Kenyas Constitution and
development goals as outlined in Vision 2030.

5.2.2 The front of all the five denominations display the Kenyatta International
Conference Centre monument as the main feature amongst other selected elements.

5.2.3 The back side bears a selection of key drivers of prosperity that can easily be
identified; Governance, Tourism, Social Services, Agriculture, Infrastructure and
green energy sources.

5.2.4 The banknotes are smaller in size in tandem with worldwide trends and the colour
chosen for different denominations are those best suited for the environment and
cash handling habits where they will be used.

5.2.5 The winning Tenderer(s) is/are expected to deliver fully printed banknotes as the
main deliverables of this tender. In addition, other deliverables for this tender will
include but not limited to the following:
i. Full letterpress numbering font sequence
ii. Approval Bromides
iii. 500 pieces of specimen currency banknotes in each denomination
awarded to be delivered at least one month before the commencement
of deliveries

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 iv. Public education materials to be delivered at least one month before
launch of the new design currency
v. Covert sensor readers and sensors
vi. Fully printed and packaged banknotes
For the purpose of harmonising the public education materials, CBK reserves the
right to direct any Tenderer to adopt a scheme which in its opinion would ensure
homogeneity across all denominations.

5.3 SUBSTRATE SPECIFICATIONS

5.3.1 The Bank will be using 100% Cotton as the Substrate for the new design banknotes
as per the following specifications.

Parameter Specification
Banknote paper Denom. Sizes
sizes
KES.1000 143mm x 70 mm
KES.500 138mm x 68 mm
KES.200 133mm x 66 mm
KES.100 128mm x 64 mm
KES.50 123mm x 62 mm

Paper scope Standard cotton banknote paper produced on a cylinder

mould machine using vat technology
Substrate 100% Cotton
Wet strength Formaldehyde Free
Agent
Surface sizing Polyvinyl Alcohol
Opacifier Titanium dioxide
Base paper The paper shall be Ultra Violet (UV) dull
fluorescence
Watermarks Size and location of all watermarks including watermark
tracks supporting windowed security thread or the
presence of structural watermarks are defined within the
approved design materials.
Corner To provide a 30% minimum increase in corner stiffness
reinforcement compared to unreinforced areas of the banknote paper.
Bending angle should be made perpendicular to the
structural watermark.
Long edge Watermark bars to provide a minimum 30% increase in
reinforcement the long edge stiffness compared to unreinforced areas of
the banknote paper.
Watermark 3mm in both Machine and cross directions about
wander Tolerance nominal position
Thread wander 6mm in cross direction about nominal position
tolerance

Page 32 of 57
 Parameter Specification
Iridescent band 3mm in cross direction about nominal position
wander
Testing conditions 65% rH 2% rH at 20C 2C1

5.3.2 The paper for the proposed banknotes should conform with the following
parameter results when subjected to testing standards specified.

Property Units Specification Test standard

Grammage g/m2 955% ISO 536
Thickness2 m 115 10% Tappi T411 om-10
Bendtsen roughness ml/min 1,000 max ISO 8791/2
Roughness top ml/minute 300 900 ISO 8791/2
Roughness bottom ml/minute 300 900 ISO 8791/2
Contrast Ratio % 83.5 min Tappi T-425 om-91
Opacity3
Plain Porosity ml/min 25 max ISO 5636/3
Crumpled porosity4 ml/min 200 max ISO 5636/3

Mean single teari5 mN 850 min ISO 1974

Mean double folds6 - 5000 min ISO 5626
MD Dry tensile7 kgf/15mm 9.5 min ISO 1924/2
MD wet tensile Kgf/15mm 3.7 min ISO 3781
Wet Strength ratio % 30 min ISO 3781
(WSR)
Water Absorption g/m2 100 max ISO 535
(Cobb method)
Ash % 5 max ISO 2144
pH8 - 5 Tappi T428 om-99
Colour9 L* CIELAB 94.5 1.0 DIN 6174
a* -0.58 0.35
b* 5.73 .07
E 1.5 max
C 1.0 max

1
Specification applies to the average performance for each shipment
2
Measured under 50kpa deadweight pressure
3
89% reflectance backing technique
4
Industry standard crumpling methodology using IGT equipment calibrated to 10 kgf and using an
automatic crumpling device
5
Using a single tear tester fitted with a type A p[pendulum
6
Using shopper type equipment
7
Constant rate of elongation method
8
Using three minute hot extract method

9
Using a D65 light source

Page 33 of 57
5.4 SUBSTRATE SECURITY FEATURES SPECIFICATIONS

5.4.1 The banknote paper shall feature a three dimensional portrait watermark of a
lion. The eyes of the lion shall be bright and distinct. This shall be developed from
a three-dimensional cylinder mould made watermark.

5.4.2 Additional text watermarks shall be located below the portrait watermark. The
watermarks shall feature a dark text of the denomination i.e. 50, 100, 200, 500 or
1000; a bright text CBK; and another bright text of the denomination but inverted.
The text watermarks should be synchronised to fit in well to the overall design of
the banknote.

5.4.3 There shall be structural watermarks on the corners and long edges of the
banknote paper.

i. The corner watermarks will be a feature that selectively stiffens the banknote
corners to prevent the formation of corner-folds (dog ears). The design of the
feature should be such that the stiffening effect is perpendicular to the corner
(i.e. at 45 degrees to the machine direction). The minimum acceptable stiffness
improvement should be 30% compared to the plain paper areas of the banknote.

ii. Similarly, the long edge watermarks will be a feature that consists of watermark
bars designed to minimise the start and immediate continuation of edge tears.
The minimum acceptable tear strength improvement delivered by the feature
should be 30% as determined by the Tappi T470 industry standard test method.

5.4.4 The banknotes should have threads that fit/integrate well with the design of the
banknotes. Tenderers will be free to make proposals for these threads along the
specification guidelines.

5.4.5 There will be two sets of threads to distinguish the high and low denominations. A
complex thread will be designated for KES.1000, KES.500 and KES.200 while
the colour changing threads will be designated for KES.100 and KES.50. The
thread should have the text CBK and denomination e.g. CBK 50 on it, either as
plain text or better with deliberate alternate inversion of numerals as well as an
image of a dove.

Denom. Thread Size Property

KES.50 3 mm Colour changing properties
KES.100 3 mm Colour changing properties
KES.200 4 mm Complex design
KES.500 4 mm Complex design
KES.1000 4 mm Complex design

5.4.6 For the lower denomination series, the thread should be a 3mm wide windowed
security thread presented as a singular strand and changes colour distinctively from
one to the other when viewed at different angles. The colour changing effect should
be easily recognisable to the public eye. In addition, the thread should have
embedded in it the text CBK, denomination numeral for the banknote and an image
of a flying dove.
Page 34 of 57
5.4.7 The thread should have excellent adhesive/bonding with the paper to avoid peeling
off.

5.4.8 The thread should have full machine readable properties through magnetism
generated by magnetic material.

5.4.9 For the higher denomination complex threads, they should at minimum be easy
to explain and understand but difficult to counterfeit. It should be 4mm windowed
when placed on the banknote. The visual changes when tilted should be easily and
instantaneously recognisable. In addition, the thread should have embedded in it
the text CBK, denomination numeral for the banknote and an image of a flying
dove.

5.4.10 The thread should have excellent adhesive/bonding properties with the paper to
avoid peeling off.

5.4.11 In addition to the thread requirements of this tender, Tenderers are at their
discretion allowed to provide an array of alternative thread structures meeting the
basic requirements indicated above without price variations that CBK may
consider in order to ensure homogeneity in the final family of banknotes issued to
circulation. The final decision on the specific thread(s) to be incorporated in the
banknotes shall be made by CBK.

5.4.12 CBK will require the winning Tenderer(s) to incorporate a unique signature coded
Covert Security Feature for each denomination of the banknotes. The covert
feature in all the banknotes shall be the M-Feature.

5.4.13 The covert feature presented should be accompanied by sensors for installation in
the High Speed Banknote Processing Machines. For full integration, sensors for
the High Speed Banknote Processing machines should have been developed by the
manufacturers of the BPS 1000 series machines that the Bank is operating. The
sensors should occupy only one sensor location and should not require any external
equipment for its functionality. Additionally, ten (10) desktop covert security
feature readers should be supplied.

5.4.14 Tenderers should liaise with the covert feature supplier and factor the cost of the
covert feature, sensors and desktop covert feature readers in their tender offer. The
cost should be quoted per thousand pieces of banknotes for the complete product.

5.4.15 The banknote paper shall have a minimum density of 75/dm2 of two fibre types
(daylight invisible fluorescing blue under UV and daylight invisible fluorescing
yellow under UV) expressed as the sum total of fibres on both the front and back
of the banknote.

5.5 BANKNOTE PRINT SPECIFICATIONS

5.5.1 All the new design Kenya currency banknotes shall have distinct colours.

Page 35 of 57
5.5.2 The banknote primary colours shall be as Brown for KES 1,000, Green for KES
500, Blue for KES 200, Purple for KES 100 and Reddish for KES 50.

5.5.3 The Inks to be used in the printing of the banknotes shall be those specifically
manufactured for security printing and only available exclusively to the banknote
printing industry. The inks must be formulated to ensure maximum durability, light
fastness and resistance to humidity and other extreme climatic conditions as well
as to domestic chemicals that the banknotes may encounter in usual usage.

5.5.4 All printed banknotes should be suitable for handling by both manual and
automated currency handling machines (acceptors and dispensers). They should
also be suitable for handling by high speed sorting machines.

5.5.5 The offset and intaglio workings for each of the banknotes is specified in the table
below.

Denomination 50 100 200 500 1000

Litho Workings Front
Litho Workings Back
Lithographic Features
Lithographic (offset)
3 workings
3 workings
Dual colour fluorescence Images seen as same
colour under normal light but seen in two
different contrasting colours when viewed in
Ultra Violet light.
Two perfect register see through features on
either half of the banknote. One is an image of a
dove on the left hand side of the banknote and the
other is a shield on the right hand side of the
banknote.
Micro-texts both front and back of banknote
Anti-scan features both front and back of
banknote

Intaglio Colours; Front
Intaglio Colours; Back
Intaglio Features
Intaglio
3 workings
3 workings
Infra-Red (IR) readable and non-readable inks on
selected sections of the banknote
Extra small printed texts
Micro engraved lettering texts
Latent image
Sicpatalk
- KES 1000: area of 1184 mm
- KES 500: area of 1391 mm
- KES 200: area of 1492 mm
- KES 100: area of 1218 mm

Page 36 of 57
 Denomination 50 100 200 500 1000
- KES 50: area of 981 mm2

Blind recognition marks on the edge of the

banknote with banknote denomination identified
by number of bands.

5.5.6 The Banknotes are to be numbered in a two matching serial sequence in letterpress.
Letterpress workings for all the banknotes is specified in the table below.

First set of serial numbers
Second set of serial numbers
First Letterpress Ink
Second Letterpress Ink
Machine readable feature
Letterpress
Horizontal black magnetic serialisation on the
right hand side of the banknote. The number
font size increases as progression is made.
Left hand side serial number is red in colour,
vertically placed and UV readable. The number
font size increases as progression is made.
Black magnetic
Red fluorescing yellow
One Phosphorescent block in KES 50, 100 and
200 and Two Phosphorescent blocks in KES
500 and 1000. All blocks are uniquely placed
per denomination.

5.5.7 Defective notes that are removed during quality inspection will be replaced with
notes bearing replacement series numbering. The range of prefixes and numbers
for the main and replacement series notes shall be mutually agreed in writing with
the Tenderer following order confirmation.

5.5.8 All banknotes shall have an invisible ink iridescent band provided on the back of
the banknotes. The band shall specify the banknote denomination and the text
CBK.

5.6 PACKAGING SPECIFICATIONS

5.6.1 The Bank emphasises on the need for strong and secure packaging for all its
banknotes.

5.6.2 The banknotes should counted and banded with a band paper as a sub bundle of
100 pieces. The banding paper should be printed with the text CBK and banknote
denomination as well as contain adequate details for quality control follow up. The
serial numbers in the sub bundle should be sequential and should not exceed
number 9500000 for every alpha prefix i.e. AA0000001 ZZ9500000.

5.6.3 All sub-bundles should be banded in 10s to make a bundle. The banding paper
should contain sufficient details to enable trace-back for quality control.

5.6.4 The bundle which consists of 1,000 pieces of banknotes shall be wrapped in a
shrinking foil clearly labelled CBK and denomination and sealed all around.

Page 37 of 57
5.6.5 Fifty (50) bundles (50,000 pieces), will be then be packed in a secure plastic box
lined with a heavy duty plastic sheet. The boxes packed should be sealed and
banded.

5.6.6 All boxes will be coded with information relating to the particular currency
contained therein which includes denomination code, currency date and box serial
number. This information should be clearly visible from all angles the boxes are
viewed at. The denomination codes are as follows:-

Denomination Code
KES.1,000 ZC
KES.500 YC
KES.200 XC
KES.100 WC
KES.50 VC

The final coding structure will be confirmed during production.

5.6.7 All boxes should be addressed to the Central Bank of Kenya, Nairobi

5.6.8 All plastic material used at whichever stage should clearly be printed CENTRAL
BANK OF KENYA or BANKI KUU YA KENYA.

Use of biodegradable plastic is encouraged.

5.7 PROPOSED DELIVERY SCHEDULES

5.7.1 The Bank is mandated to issue adequate, secure and clean currency to the public at
all times. Prompt and secure delivery of currency is paramount in this tender. The
Bank expects the winning Tenderer(s) to stagger deliveries of currency in
manageable quantities within the following yearly spreads. A detailed delivery
schedule will be prepared and agreed with the winning Tenderer(s).

Denomination Quantities in Millions of Pieces

Year 1 Year 2 Year 3 Total
220 150 130 500
KES.50
300 210 190 700
KES.100
100 100 100 300
KES.200
120 70 60 250
KES.500
220 190 190 600
KES.1000
960 720 670 2,350

Page 38 of 57
5.7.2 Tenderers are notified that for purposes of managing the delivery logistics and
security, the following guidelines will be applied in managing the delivery
logistics.
a. Not more than 20 million pieces of banknotes shall be delivered in one batch
b. The limit of 20 million pieces of banknote delivery will apply as the
maximum delivery that can be made to the Bank per day
c. Not more than 60 million pieces of banknotes will be delivered to the Bank
in a week
d. Not more than 120 million pieces of banknotes will be delivered to the Bank
in a month
e. Variations to the above guidelines can be considered on a case by case basis.
f. Higher volumes and frequency may be required in the initial deliveries.

5.8 OTHER REQUIREMENTS

5.8.1 All the banknotes shall be subjected to a post-print varnish for protection of both
substrate and printed material.

5.8.2 Tenderers are required to note that CBK will require banknote print quality and
paper quality reports during the actual production periods. The reports shall be
developed per run.

5.8.3 Tenderers have to submit time schedules in form of Gantt Charts for preparation
and engagement of the banknote printing process to final deliveries.

5.8.4 Tenderers should have adequate storage space for at least 40 million pieces of
banknotes under each lot, which CBK would at its absolute discretion be able to
call for delivery on short notice. The storage must be owned by the printer and must
meet highest security specifications of a primary storage facility.

5.8.5 Tenderers are at their discretion to bid for either one or both lots in this tender.

5.8.6 Tenderers under lot 1 and 2 should include in their pricing proposals the full cost
of developing and delivering public education materials for the new design
currency. Submission of proposals and material for currency banknotes public
education to be used during the pre-launch, launch and post-launch of the new
currency banknotes should be suitable for the local environment. The costs should
be prorated per lot. The materials should at the minimum be as follows:-

Item Quantity
10,000 controlled delivery
Posters Size A3
500,000 controlled delivery
Posters Size A2
500,000 controlled delivery
Pamphlets

Page 39 of 57
 Mobile Device Applications for IOS, Unlimited download capabilities
Android and Windows devices
Unlimited distribution
Multi-media Flash Presentations for Web
1,000 copies
DVDs
Unlimited distribution
Local TV Infomercials

Social Medial Activations (Facebook and Unlimited distribution

Twitter)

Simplified public education booklets on 10,000 controlled delivery

stages of currency printing

5.8.7 The public education material should reflect local environment, conditions and
characters/cast.

5.8.8 CBK may propose a conference meeting with winning Tenderer(s) under Lot 1 and
2 for development of standardised public education material to achieve uniformity.
However, proposals from Tenderers are welcome.

5.8.9 It is the responsibility of the successful Tenderer(s) to seek rights to the use of any
patented materials/features to be used in the production of the banknotes in this
Tender.

Page 40 of 57
 SECTION - VI- SCHEDULE OF REQUIREMENTS

A) REQUIRED QUANTITIES

Item Banknote Denomination Total Quantity

Number (Millions of Pieces)
500
1. KES.50
700
2. KES.100
300
3. KES.200
250
4. KES.500
600
5. KES.1000
2,350

B) EVALUATION PROCEDURE

i. Technical Evaluation of Tenders will be based on the Tenderer meeting all the
set Mandatory Requirements in the Tender Document. This will be marked as
YES or NO depending on the Tenderers response
ii. Tenderers meeting all the Mandatory Requirements will progress to the
technical evaluation.
iii. For the technical evaluation, Tenderers have the option of participating in either
one or all the lots.
iv. Tenderers have to score the minimum technical threshold score set as the pass
mark in order to progress to the Financial Evaluation Stage. This score shall be
75%.
v. Winning Tenderer(s) will be determined during the Financial Evaluation Stage
on the basis of lowest evaluated price per lot.

C) MANDATORY REQUIREMENTS

No. Requirements Reference REQUIREMENT

(if any) MET? (YES/NO)
MR 1 Provide a Tender Security of United States
Dollars Five Hundred Thousand Only (USD
500,000)
MR 2 Provide copy of the companys current
Certificate of Tax Compliance or a valid tax
exemption certificate issued by the Revenue
Authority of the domicile country valid as at
the date of tender opening.

Page 41 of 57
 No. Requirements Reference REQUIREMENT
(if any) MET? (YES/NO)
MR 3 Provide a letter of undertaking that during
and after the tender process the Tenderer
shall maintain confidentiality with regard to
specifications and requirements pertaining to
the tender. The letter should be marked
Undertaking to Maintain Confidentiality
MR 4 Submit the duly completed Confidential
Business Questionnaire in the standard
documents.

MR 5 Submit one original and one copy of the duly

completed bid document.

D) TECHNICAL REQUIREMENTS

Evaluation for LOT 1 and 2

EVALUATION EVALUATION MAX.

SCORING REF.
CATEGORY CRITERIA SCORE
PRODUCTION AND DELIVERY CAPABILITY (40%)
T1 Printing Tabulate the number Over 10 contracts in 20
Capability of contracts per total, award 20 marks
region/continent
awarded for currency Between 5-10
printing over the last contracts, award 10
ten (10) years. marks

More than 1 but less

than 5 contracts, award
5 marks

No contract, award no
marks

Page 42 of 57
 EVALUATION EVALUATION MAX.
SCORING REF.
CATEGORY CRITERIA SCORE
T 2 Printing Confirm the time 6 months and below, 20
Timelines period in months it award 20 marks
will take to print and
deliver at least 50 Above 6 months but
million pieces of within 9 months,
banknotes in each lot. award 15 marks

Confirmation to be Above 9 months but

accompanied by a within 12 months,
detailed Gantt Chart award 10 marks
detailing every step
Above 12 months,
award no marks
QUALITY CONTROL AND RISK MANAGEMENT (40%)
T3 Quality Confirm if the Evidence submitted 15
Assurance Tenderer has an in- through:-
house laboratory for Signed off checklist
the testing of paper of tests undertaken
specifications which is by your company
externally audited. during production of
banknotes. Sign off
should be done by
the Quality Control
Manager.
Copy of the latest
external audit report
for the testing
facility.

Award 15 marks if
complied

Award no mark of no
compliance
T4 Risk Demonstrate if the Evidence through a 10
Management Tenderer carries out brief of the
risk assessments of the organisations risk
production sites and management
frequency of such framework which
assessments. includes but not
limited to policy
statement, structure,
scope, strategies,
guidelines, timelines
of assessment per site
etc.

Page 43 of 57
 EVALUATION EVALUATION MAX.
SCORING REF.
CATEGORY CRITERIA SCORE
Award 10 marks

No evidence award
no mark
Confirm that the Evidence through a 5
Tenderer has a certificate or letter
comprehensive from insurers
insurance cover for the evidencing a
printing plant(s). comprehensive
insurance cover for the
printing plant(s)
Award 5 marks

No evidence award
no mark

T5 Security Demonstrate that your Evidence of Tenderer 10

firm applies effective granted the ISO 14298
security management certification or any
requirements in the other internationally
currency printing recognised
process accreditation 10
marks

No evidence award
no mark

ANCILLARY INFORMATION (20%)

T6 Public Demonstrate your Award full marks if 10
Education capacity to develop evidence of having
public education developed and assisted
content and material a central bank in a
for new currency. new currency public
education program
e.g. Confirmation
letter from a central
bank, award granted
from recognised
currency body and or
sample of public
education developed.

Award no mark where

such evidence is not
submitted.

Page 44 of 57
 EVALUATION EVALUATION MAX.
SCORING REF.
CATEGORY CRITERIA SCORE
T 7 Solvency Provide three years financial statements for evaluation of T7 & T8
Compute the average If Debt to Equity ratio 5
three year financial
leverage of the Less than 1, Award 5
Tenderer through Debt Marks
to Equity Ratio.
Between 0.5 1,
Debt to Equity = Award 3 Marks
Total liabilities / Total
equity Less than 0.5, Award 1
Mark
T8 Liquidity Compute the average If Quick ratio is: 5
three year liquidity
position of the Above 1, Award 5
Tenderer through the Marks
Quick Ratio. Between 0.5 1,
Award 3 Marks
Quick ratio = (Current Less than 0.5, Award 1
assets Inventories) / Mark
Current liabilities
Total 100

Page 45 of 57
 SECTION VII- PRICE SCHEDULE FOR GOODS

Name of tenderer

Country of Goods Origin

Tender Number

LOT NUMBER 1 Low Denomination Series

No. Denomination Banknote Quantity Unit price Per Total Price

(Million Pieces) Thousand Pieces (USD)
1. KES.50 500
2. KES.100 700
Sub-Total 1,200

Amount in Words:

LOT NUMBER 2 High Denomination Series

No. Denomination Banknote Quantity Unit price Per Total Price

(Million Pieces) Thousand Pieces (USD)
3. KES.200 300
4. KES.500 250
5. KES.1000 600
Sub-Total 1,150

Amount in Words:

Summary of Pricing (Carried to Form of Tender)

No. Item Description Total Price Amount in Words

(USD)
1.
Lot Number 1
2.
Lot Number 2

5. *Provisional sum for 150,000 United States Dollars One Hundred

independent quality and Fifty Thousand Only
assurance Annual tests for
each of the denominations

Page 46 of 57
Authorised Official

Signature & Stamp of Tenderer

Date

Note: In case of a discrepancy between total value and words, words shall prevail.

*Tenderers can update the provisional amounts given for carrying out an
independent quality assurance test on each of the banknote denominations over
each supply year.

Page 47 of 57
 SECTION VIII - STANDARD FORMS

Notes on the Standard Forms:

8.1 Form of Tender

This form must be completed by the Tenderer and submitted with the Tender
documents. It must also be duly signed by duly authorized representative of the
Tenderer.

8.2 Confidential Business Questionnaire Form

This form must be completed by the Tenderer and submitted with Tender documents

8.3 Tender Security Form

When required by the Tender document the Tenderer shall provide the Tender security
either in the form included therein after or in another format acceptable to the Central
Bank of Kenya.

8.4 Contract Form

The General and Special conditions herein represent a general outline of the terms and
conditions of the contract that will be entered into between the Procuring Entity and the
Tenderer. The Procuring Entity will prepare a contract to be executed by it and the
Tenderer who is awarded the contract.

Contract form shall not be completed by the Tenderer at the time of submitting the
Tender. The contract form shall be completed after contract award.

8.5 Performance Security form

The performance security form should not be completed by the Tenderer at the time of
Tender preparation. Only the successful Tenderer will be required to provide
performance security in the sum provided herein or in another form acceptable to the
Central Bank of Kenya.

8.6 Bank Guarantee for Advance Payment.

When there is an agreement to have Advance payment, this form must be duly
completed.

8.7 Manufacturers Authorization Form

When required by the Tender document, this form must be completed and submitted
with the Tender document. This form will be completed by the manufacturer of the
goods where the Tender is an agent.

Page 48 of 57
8.1 FORM OF TENDER
Date
Tender No.
To:

[Name and address of Central Bank of Kenya]

Gentlemen and/or Ladies:

1. Having examined the Tender documents including Addenda Nos.

. [insert numbers].the receipt of which is hereby duly
acknowledged, we, the undersigned, offer to print and supply new design Kenya
currency banknotes in conformity with the said Tender documents for the sum of:-
No. Item Description Total Price (USD) Amount in Words
1. Lot Number 1
2. Lot Number 2
or such other sums as may be ascertained in accordance with the Schedule of Prices
attached herewith and made part of this Tender.
2. We undertake, if our Tender is accepted, to print and deliver new design Kenya
currency banknotes in accordance with the delivery schedule specified in the
Schedule of Requirements.

3. If our Tender is accepted, we will obtain the guarantee of a bank in a sum of

equivalent to percent of the Contract Price for the due
performance of the Contract , in the form prescribed by .
.(Central Bank of Kenya).

4. We agree to abide by this Tender for a period of [number] days from the date
fixed for Tender opening of the Instructions to Tenderers, and it shall remain
binding upon us and may be accepted at any time before the expiration of that
period.

5. This Tender, together with your written acceptance thereof and your notification of
award, shall constitute a Contract, between us, subject to signing of the Contract by
the parties.

6. We understand that you are not bound to accept the lowest or any Tender that you
may receive.

Dated this day of 20

[Signature] [in the capacity of]

Duly authorized to sign Tender for an on behalf of

Page 49 of 57
8.2 CONFIDENTIAL BUSINESS QUESTIONNAIRE FORM

You are requested to give the particulars indicated in Part 1 and either Part 2(a), 2(b) or
2 (c) whichever applied to your type of business. You are advised that it is a serious
offence to give false information on this form

Part 1 General:

Business Name
..
Location of business premises.
Country...
Plot No Street/Road
..
Postal Address .. Tel No. . Fax .
E mail . Postal Code ..
Nature of Business..
Registration Certificate No.

Maximum value of business which you can handle at any one time USD.

Name of your bankers Branch Location

Part 2 (a) Sole Proprietor

Your name in full .. Age ..
Nationality Country of origin .
Citizenship details
.

Part 2 (b) Partnership

Given details of partners as follows:
Name Nationality Citizenship Details
Shares
1. .
2.
3. ..
4. ..

Page 50 of 57
 Part 2 (c ) Registered Company
Private or Public
.
State the nominal and issued capital of company-
Nominal USD.
Issued USD.
Given details of all directors as follows
Name Nationality Citizenship Details
Shares
1..
2. ..
3.
4.
5 .

Date . Seal/Signature of Candidate ..

Page 51 of 57
8.3 TENDER SECURITY FORM (BID BOND)

Whereas . [name of the Tenderer]

(hereinafter called the Tenderer) has submitted its Tender dated . [date of
submission of Tender] for the printing and supply of new design Kenya currency
(hereinafter called the Tender) .. KNOW
ALL PEOPLE by these presents that WE of
. having our registered office at
(hereinafter called the Bank), are bound unto .. [name
of Central Bank of Kenya} (hereinafter called the Central Bank of Kenya) in the sum
of .. for which payment well and truly to be made to
the said Central Bank of Kenya, the Bank binds itself, its successors, and assigns by
these presents. Sealed with the Common Seal of the said Bank this
day of 20 .

THE CONDITIONS of this obligation are:-

1. If the Tenderer withdraws its Tender during the period of Tender validity
specified by the Tenderer on the Tender Form; or

2. If the Tenderer, having been notified of the acceptance of its Tender by the
Central Bank of Kenya during the period of Tender validity:
(a) fails or refuses to execute the Contract Form, if required; or
(b) fails or refuses to furnish the performance security in accordance with the
Instructions to Tenderers;

3. If the tenderer rejects or fails to accept the correction of arithmetic errors

We undertake to pay to the Central Bank of Kenya up to the above amount upon receipt
of its first written demand, without the Central Bank of Kenya having to substantiate
its demand, provided that in its demand the Central Bank of Kenya will note that the
amount claimed by it is due to it, owing to the occurrence of one or all of the three
conditions, specifying the occurred condition or conditions.

This Tender guarantee will remain in force up to and including thirty (30) days after the
period of Tender validity, and any demand in respect thereof should reach the Bank not
later than the above date.

[signature of the bank]

(Amend accordingly if provided by Insurance Company)

Page 52 of 57
8.4 CONTRACT FORM

THIS AGREEMENT made the day of 20

between [name of Procurement entity) of .. [country of
Procurement entity] (hereinafter called the Central Bank of Kenya) of the one part and
.. [name of Tenderer] of .. [city and country of Tenderer]
(hereinafter called the Tenderer) of the other part;

WHEREAS the Central Bank of Kenya invited Tenders for [printing and supply of new
design Kenya currency] and has accepted a Tender by the Tenderer for the supply of
those goods in the sum of [contract price in words and
figures] (hereinafter called the Contract Price).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to:

2. The following documents shall be deemed to form and be read and construed as
part of this Agreement viz:
(a) the Tender Form and the Price Schedule submitted by the Tenderer
(b) the Schedule of Requirements
(c ) the Technical Specifications
(d) the General Conditions of Contract
(e) the Special Conditions of contract; and
(f) the Central Bank of Kenyas Notification of Award

3. In consideration of the payments to be made by the Central Bank of Kenya to

the Tenderer as hereinafter mentioned, the Tenderer hereby covenants with the Central
Bank of Kenya to provide the goods and to remedy the defects therein in conformity in
all respects with the provisions of this Contract.

4. The Central Bank of Kenya hereby covenants to pay the Tenderer in

consideration of the provisions of the goods and the remedying of defects therein, the
Contract Price or such other sum as may become payable under the provisions of the
Contract at the times and in the manner prescribed by the contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with their respective laws the day and year first above written.

Signed, sealed, delivered by the (for the Central Bank of

Kenya)

Signed, sealed, delivered by the (for the Tenderer in the

presence of

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8.5 PERFORMANCE SECURITY FORM (PERFOMANCE BOND/BANK
GUARANTEE)

To .
[name of Central Bank of Kenya]

WHEREAS [name of Tenderer] (hereinafter called

the Tenderer) has undertaken , in pursuance of Contract No.
[reference number of the contract] dated 20 to
supply [description of product]
(hereinafter called the Contract).

AND WHEREAS it has been stipulated by you in the said Contract that the Tenderer
shall furnish you with a bank guarantee by a reputable bank for the sum specified therein
as security for compliance with the Tenderers performance obligations in accordance
with the Contract.

AND WHEREAS we have agreed to give the Tenderer a guarantee:

THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on

behalf of the Tenderer, up to a total of . [amount of the guarantee
in words and figure] and we undertake to pay you, upon your first written demand
declaring the Tenderer to be in default under the Contract and without cavil or
argument, any sum or sums within the limits of .. [amount of
guarantee] as aforesaid, without you needing to prove or to show grounds or reasons
for your demand or the sum specified therein.

This guarantee is valid until the day of 20

Signed and seal of the Guarantors

[name of bank or financial institution]

[address]

[date]

(Amend accordingly if provided by Insurance Company)

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8.6 BANK GUARANTEE FOR ADVANCE PAYMENT

To
[name of Central Bank of Kenya]

[name of Tender] ..

Gentlemen and/or Ladies:

In accordance with the payment provision included in the Special Conditions of

Contract, which amends the General Conditions of Contract to provide for advance
payment, . [name and address of
Tenderer](hereinafter called the Tenderer) shall deposit with the Central Bank of
Kenya a bank guarantee to guarantee its proper and faithful performance under the said
Clause of the Contract an amount of . [amount of guarantee in
figures and words].

We, the . [bank or financial institutions], as instructed by

the Tenderer, agree unconditionally and irrevocably to guarantee as primary obligator
and not as surety merely, the payment to the Central Bank of Kenya on its first demand
without whatsoever right of objection on our part and without its first claim to the
Tenderer, in the amount not exceeding [amount of guarantee in
figures and words]

We further agree that no change or addition to or other modification of the terms of the
Contract to be performed there-under or of any of the Contract documents which may
be made between the Central Bank of Kenya and the Tenderer, shall in any way release
us from any liability under this guarantee, and we hereby waive notice of any such
change, addition, or modification.

This guarantee shall remain valid in full effect from the date of the advance payment
received by the Tenderer under the Contract until [date].

Yours truly,

Signature and seal of the Guarantors

[name of bank or financial institution]

[address]

[date]

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8.7 MANUFACTURERS AUTHORIZATION FORM

To [name of the Central Bank of Kenya] .

WHEREAS [ name of the

manufacturer] who are established and reputable manufacturers of ..
[name and/or description of the goods] having factories at
[address of factory] do hereby authorize
[name and address of Agent] to submit a Tender, and
subsequently negotiate and sign the Contract with you against Tender No.
. [reference of the Tender] for the above goods manufactured by
us.

We hereby extend our full guarantee and warranty as per the General Conditions of
Contract for the goods offered for supply by the above firm against this Invitation for
Tenders.

[signature for and on behalf of manufacturer]

Note: This letter of authority should be on the letterhead of the Manufacturer and
should be signed by an authorized person.

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8.8 LETTER OF NOTIFICATION OF AWARD

Address of Central Bank of Kenya

_______________________

_______________________

To:

RE: Tender No.

Tender Name

This is to notify that the contract/s stated below under the above mentioned Tender
have been awarded to you.

1. Please acknowledge receipt of this letter of notification signifying your

acceptance.

2. The contract/contracts shall be signed by the parties within 30 days of the date
of this letter but not earlier than 14 days from the date of the letter.

3. You may contact the officer(s) whose particulars appear below on the subject
matter of this letter of notification of award.

(FULL PARTICULARS)

SIGNED FOR ACCOUNTING OFFICER

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