50th Anniversary of the Central Bank of Kenya (1966-2016): exhibition – from colonial to independent currencies

Fifty years of the Central Bank of Kenya (1966-2016) is celebrated in an exhibition at the National Museum of Kenya in Nairobi.

The exhibition celebrates the creation of the Central Bank of Kenya (CBK) after independence through an Act of Parliament in 1966. The exhibition highlights the early to modern forms of trade and exchange of goods and services in Kenya from cowrie shells to coins and banknotes to technogical advances.

The early external trade was known as the Indian Ocean trade or the dhow trade (named after the Arabian ships). Kenya’s trade contacts with the East African Coast were the Arabs, Indians, Portuguese, Chinese, and Persians through a barter system (the swapping of goods).

Long distance traders from the interior included the Kamba of Kenya, the Yao of the Zambesi, and the Nyamwezi of Tanzania. Trade centres, such as Mombasa, Malindi, Mumias, Machakos, Tabora, and Bagamoyo developed along these trade routes.

The demand from Europe and America for ivory and slaves, and the need for labour in the clove plantations in Zanzibar and Pemba established by the Sultan Seyyied Said, fueled the trade. Other trade goods included imported cloth, jewelry, silk, porcelain, guns, wine, salt, and spices. Major exports from the East Coast included rhinoceros horns, gold, cowrie shells, beads, copper, leopard skins, ochre, and iron ore.

The Marie Theresa Thaler currency,  minted in Austria in 1751, was the earliest documented coin used in the Indian Ocean trade. As trade flourished, the Silver Rupee, minted by the British East India Company, was also in use. Copper was used for low-value purchases.

In 1919, the British colonial administration established the London-based East Africa Currency Board (EACB) to replace the Mombasa (then in  Tanzania) and Kampala (Uganda) Currency Boards. In 1921 EACB introduced the 1 shilling and 50 cent coins with 25% silver content. The Board also introduced 1 cent, 5 cent, and 10 cent coins of bronze content. Banknotes were introduced in 1921 too in denominations of 5, 10, 20, 100, 200, 1000, and 10,000 shillings. These currencies were used between 1921-1933 during the reign of King George V of England.

Following the death of King George V in 1936, his eldest son, King Edward VIII, became king, but only for 326 days before he abdicated the throne. The East Africa Currency Board minted 5 cent and 10 cent coins in 1936, being the only currencies issued under his name.

King George VI, the younger brother of King Edward VIII, took over the crown in 1936 until his death in 1952. The East Africa Currency Board issued notes in denominations of 5, 10, 20, 100, 1000, and 10,000 shillings. Coins were issued in denominations of 5, 10, and 50 cents, and 1 shilling. Zanzibar, which was using the Rupee, was incorporated in the East Africa Currency Board in 1936. In the same year, Italy occupied Ethiopia, and annexed it to Italian Somaliland and Eritrea. This region was known as Italian East Africa, which was using the Italian East Africa Lira. When Britain took over the region in 1941 it introduced the East Africa Shilling as the official currency. It was exchanged at 24 Lira to 1 East Africa Shilling.

In 1943, due to the Second World War, the East Africa Currency Board introduced a shilling banknote to replace the silver coin because the value of silver had risen. They also issued less than 50 one shilling coins. In 1947 India gained its independence from Britain, which led to the removal of the phrase REX ET IND: IMP (Imperator India) from all coins. Between 1948-1952, after the Second World War, 50 cents and 1 shilling coins, made of cupro-nickel, were issued. In 1951 the East African currency (the shilling) was adopted in Yemen, Narjran (present day Saudi Arabia), and Dhotar (present day Oman).

Queen Elizabeth II commenced her reign in England in 1953 after the death of her father King George VI. In 1961 Queen Elizabeth II banknotes were modified and carried seven signatories to include local settlers (to replace the previous four signatories). This was necessary as the full operation of the East Africa Currency Board was transferred from London to East Africa.

Prior to independence all currencies in East Africa had the image or symbol of the British Monarchy. After independence in 1964, new currencies were issued. The designs of the banknotes featured a dhow on Lake Victoria, the common territory of the three East African countries (Kenya, Tanzania, and Uganda). The banknotes (5, 10, 20, and 100 shillings) were called ‘Lake Issue’ and had Swahili writing. The coins (5 and 10 cents) were termed ‘Uhuru’ and had no writing and no images of the monarch. These were the final currencies issued by the East Africa Currency Board. The Board was dissolved due to independence, and Central Banks were established in the respective three East African countries.

The first set of Kenyan currencies were issued between 1966 and 1978 under the newly-established Central Bank of Kenya. Jomo Kenyatta was the first Prime Minister of the Republic of Kenya for one year from 1963 to 1964, and later became the first President of the Republic of Kenya until 1978.

From 1969-1978 the title ‘the first President of Kenya, Mzee Jomo Kenyatta’ was introduced on the obverse side of coins (5, 10, 25, and 50 cents, and 1 shilling), while the Arabic numerals were removed. In 1973 a 5 shilling coin with nine sides (called a Kona Tisa) was issued to mark 10 years of independence. It was both commemorative and circulatory.

From 1980-2002 banknotes were issued in denominations of 5, 10, 20, 50, 100, 200, 500, and 1000 Kenya shillings. The 200 shilling note was issued in 1986, while the 500 shilling note was issued in 1988, and the 1000 shilling note was issued in 1995 (the highest denomination to date). The 5, 10, and 20 shilling notes were last issued on 1 July 1984, 1 January 1994, and 1 September 2002 respectively.

MARTINA NICOLLS is an international aid and development consultant, and the author of:- Similar But Different in the Animal Kingdom (2017), The Shortness of Life: A Mongolian Lament (2015), Liberia’s Deadest Ends (2012), Bardot’s Comet (2011), Kashmir on a Knife-Edge (2010) and The Sudan Curse (2009).