The Kenyan currency has undergone significant changes since the country’s pre-independence days.
Over the years, banknotes and coins in Kenya have featured images of past presidents, wildlife, athletes, and notable landmarks.
A Historical Overview
Before Kenya’s independence, the region was part of British East Africa, which also included Uganda and Tanganyika. During this colonial period, Kenya used British currency, initially the Indian rupee, which was common in many British territories.
In 1920, the rupee was replaced by the East African florin, which was soon succeeded by the East African shilling. The British pound, prior to its decimalisation, was divided into 20 shillings. In British East Africa, the shilling became the predominant currency rather than the more expensive pound.
Upon gaining independence on December 12, 1963, and formally becoming a republic in 1964, Kenya continued to use the East African shilling. However, a new currency system was introduced in 1966, with the Kenyan shilling replacing the East African shilling at a 1:1 ratio.
The Introduction of the Kenyan Shilling
The Kenyan shilling marked the beginning of a new era in Kenya’s monetary history. Initially, both shillings and pounds were in use, with a conversion rate of 20 shillings to the pound. Gradually, the pound was phased out, and only shillings and cents remained in use.
As the East African territories gained independence sequentially from 1962, the East African Currency Board (EACB) ceased to issue notes featuring the British monarch’s image and removed her name from the coinage. A common currency for the East African Community was proposed, leading to the introduction of interim currencies, known as the “Lake Issue” due to the Lake Victoria backdrop on the notes.
These notes, featuring a dhow on Lake Victoria, were issued in denominations of 5, 10, 20, and 100 shillings. By April 1967, Kenya began producing its own currency under the Central Bank of Kenya’s authority, with coins introduced the same year. EACB banknotes ceased to be legal tender in September 1967, and their coins were demonetized by April 1969.
Portraits on Currency
The first Kenyan shilling banknotes featured the portrait of Mzee Jomo Kenyatta, Kenya’s first president, alongside scenes depicting economic activities. These notes marked the introduction of the dual title of Banki Kuu ya Kenya and Central Bank of Kenya.
In April 1967, new coins were issued in denominations of 5 cents, 10 cents, 25 cents, 50 cents, and 1 shilling, minted by the Royal Mint in the UK. These coins featured Kenyatta’s portrait on the obverse and the Kenyan coat of arms on the reverse.
In 1979, Daniel arap Moi’s portrait replaced Kenyatta’s, continuing until 2005 when a new series of coins reintroduced Kenyatta’s image. The denominations of coins included 50 cents, 1 shilling, and bi-metallic 5, 10, and 20 shillings. The 5 shilling notes were replaced by coins in 1985, followed by 10 and 20 shilling notes in 1994 and 1998. New notes for 200 shillings were introduced in 1986, followed by 500 and 1000 shilling notes in 1988 and 1994 respectively.
Kibaki’s Reforms
In 2002, President Mwai Kibaki won the election, ending Moi’s 24-year rule. Contrary to his pre-election pledge to avoid having his image on currency, Kibaki’s portrait appeared on a new 40 shilling coin, as well as on two commemorative coins, one in gold valued at 5,000 shillings and one in silver valued at 1,000 shillings. The 40 shilling coin was introduced to mark 40 years of independence. Kibaki later removed Moi’s portrait from the notes, replacing it with Kenyatta’s.
Modern Developments
Following the removal of Moi’s portrait, the 2010 Kenyan Constitution mandated that currency should not feature the portrait of any individual. Instead, notes and coins could depict symbols representing Kenya or aspects of Kenyan culture. This move aimed to avoid personalizing the state.
In December 2018, President Uhuru Kenyatta and CBK Governor Patrick Njoroge unveiled a new series of coins featuring animals: the giraffe on the 1 shilling coin, the rhino on the 5 shilling coin, the lion on the 10 shilling coin, and the elephant on the 20 shilling coin. These new coins include embossed features for easier identification, and the new notes, introduced on Madaraka Day, are designed to be accessible to the visually impaired.
