89) Currency and Coinage of Kenya: Shillings and Cents

89) Currency and Coinage of Kenya: Shillings and Cents

The Currency of Kenya is called the “shilling” which comprises of 100 cents and has been in circulation since 14.09.1966, when it replaced the East African shilling at par.

Historical development of Currency in Kenya:

-     From 1800-1850, the advent of the first recognized currency in Kenya was in the shape of Maria Theresa Thalers. The Thalers were 18^th and 19^th century silver coins used by Indian, Greek and European merchants along the Eritrean and Kenyan coasts. The Thalers could not find popularity elsewhere in Kenya.

-     Towards 1896, the silver Indian Rupees and paise were introduced when Indian workers who were working on the building of the Kenya – Uganda Railway were paid their wages. As the Railroad progressed inwards, the Indian Rupee and its fractions the silver “paisa” or “paise”(plural) became acceptable by the African population who in their various mother tongues called it the “Rupia” (for rupees) or “Pesa” (for coins)or “pesewa” (a rural Indian dialect for “paisa”).

-     In 1897, the British East African Protectorate (BEAP) introduced a new currency called “Specie” and “Pice” which failed to gather popular support.

-     In 1905, the Indian Rupee became the official currency of the BEAP in Kenya and Uganda. Denominations in circulation were 1, 5, 10, 20, 50, 100 and 500 Rupees and ½, 1, 5, 10, 20 and 50 “pice” (also called “cents” by some users).

The East African Currency Board:

-     In 1920, Kenya became a Crown Colony when the Imperial British East Africa’s (IBEA) mandate was terminated.

-     In 1919, a Central set-up known as the East African Currency Board (EACB) was created for issuance of currency in East Africa.

-     The EACB was established after Britain took over the control of Tanzania after World War I from Germany, primarily to oversee the currency circulation in the territories of Uganda, Kenya and Tanganyika (present day Tanzania). Zanzibar joined the EACB in 1936.

-     The Board comprised of four Commissioners who reported to the Secretary of State for colonies under the advisory of the Bank of England.

-     From 1919 to 1966 The East African Currency Board (EACB) was responsible for supplying and overseeing the currency in the British Colonies in East Africa operating from London, located in the offices of the “Crown Agents”.

-     The “Indian Rupee” was replaced by the “East African Protectorate Rupees”.

-     Shortly thereafter, this arrangement was terminated and the “East African Florins” were instead put into circulation.

-     In 1922, the “EACB Shilling” was the currency managed by the EACB which was at par with the U.K. Shilling which was in circulation as the official currency in Kenya, Uganda and Tanganyika.

Coin image  from the collection of Jayant Biswas

Obverse of a 1943 ten cents copper coin .On the periphery of the coin is the inscription "GEORGEIVS VI REX ET IND:IMP" (meaning "George VI, King and Emperor of India").

Reverse of the above coin  mentioning "East Africa" on the top periphery and the year of issue "1943" at the bottom of the coin. Notice that in view of the exorbitant price of metals during World War II, there is a hole in the centre of the coin to save on minting costs.

-     In 1964, after the Independence of Kenya, Uganda and Tanganyika, a common East African Central Bank was set up. An interim currency called the “Lake Victoria money” was circulated (so called because the back of these Notes depicted Lake Victoria) in the denominations of 5, 10, 20 and 100 shillings. Also, coins called the “Uhuru” coins were circulated having no head or monarch on them.

-     In 1966, the EACB was superseded by the independent Central Banks of Uganda, Kenya and Tanzania.

The Central Bank of Kenya:

The Central Bank of Kenya is located in Nairobi. It was constituted in 1966 after the dissolution of the East African Currency Board and has the sole rights and full discretion for the printing and issue of Bank Notes and coins in Kenya.

The Bank has opened currency distribution centres at Nyeri, Nakuru and Meru.

Currency/ Bank Notes:

-     On 14.09.1966 the “Kenyan Shilling” replaced the “East African Shilling” (EAS), however for the sake of expediency, both currencies were accepted as legal tender till 1969, when the EAS was demonetized in Kenya and passed into history.

-     The Central Bank of Kenya brought out Currency Notes in the denominations of 100, 50, 20, 10 and 5 shillings.

On the Front of all these Notes was a portrait of the first Prime Minister and President of Kenya Mzee Jomo Kenyatta.

The Reverse of these Notes featured various facets of economic activity in Kenya.

The last Bank Note issues with Kenyatta’s portrait were issued until 1978.

In 1980, Kenyatta’s portrait on the Notes issued till 1978was replaced by that of President Daniel Toroitich Arap Moi, following the death of Kenyatta in 1979.

In 1996, a new series of Bank Notes with new security features was issued within the undernoted denominations:

On the Front was the portrait of President Daniel Arap Moi and the Coat of Arms of Kenya. All notes carried a Lion Watermark.

On the Back of the 20 shillings Note (Shillingi Ishirini) was a baton; Moi International Sports Complex at Nairobi and an athelete.

On the Back of the 50 shillings Note (Shilingi Hamsini) was portrayed a caravan and a prominent Monument of Mombasa.

On the Back of the 100 shillings Note (Shillingi Mia Moja) was depicted the Monument to the 25^th Anniversary of Independence of Kenya, at Nairobi.

On the Back of the 200 shillings Note (Shillingi Mia Mbili), was depicted the Unity Monument at Nairobi.

On the Back of the 500 shillings Note (Shillingi Mia Tano) was shown the Parliament Building at Nairobi.

On the Back of the 1000 shillings Note (Shilingi Elfu Moja) was depicted a grazing herd of elephants.

The National Coat-of Arms of Kenya:

The guidelines for the use of the National Coat of Arms of Kenya are contained in the National Flag, Emblems and Names Act 1963 (also referred to as the Armorial Ensigns).

a) Escutcheon:

“On an African shield: Per fess sable and vert, a fess Gules fimbriated argent charged with a cock erect argent bearing an axe argent”.

Description:

In the Centre is the shield with two spears appearing together with the National colours. The shape of the shield and spears are those of the native Maasai tribe.

The shield and the spears are a symbol of defence and freedom, as well as the cultural heritage of Kenya and represent Kenya’s Independence and Sovereignty. The shield and spears elaborate the country’s proud and diverse cultures with a colourful heritage.

The colours on the shield are the National colours.

Black represents the people of Kenya,

Green represents Agriculture and Natural Resources,

Red represents the struggle for freedom and

 White represents unity and peace.

The rooster moving forward holding an axe in the middle of the shield, chosen because the Rooster seldom moves backwards (like the Kangaroo and the Emu shown on the Australian Coat-of-Arms).

According to African tradition, the Rooster is also, the only domestic fowl which announces the dawn of a new day. The axe in its claw represents authority, the will to work and the dawn of a new era of Freedom. It is also the symbol of the Kenyan Africa National Union (KANU) party which led the country to freedom from the British.

b)         Supporters:

Two lions rampant proper on either side grasping in the interior forepaw a spear of the estate, the hafts of the spears crossed in saltire behind the shield.

Description:

Two lions with fiery tongues standing on two hind legs, each holding the shield representing the defence of freedom.  Lions are native to Kenya and is found in all National Parks and Reserves of Kenya. The Maasai culture included hunting of lions on certain occasions, which became a sport for the British hunters.

c)         Compartment:

Mount Kenya with coffee, pyrethrum, sisal, tea, maize and pineapples.

Description:

There is a silhouette of Mount Kenya and in the foreground examples of Kenyan agricultural produce – coffee, pyrethrum, sisal, tea, maize and pineapples. Mount Kenya is the predominant geographical feature of the country. Upon it is the rich black soil which produces all the staple foods represented here, most of which are exported in order to earn revenue for the country.

d)         Motto:

“HARAMBEE” contained on the scroll.

Description:

 This is a Swahili word meaning “all pull together” or “all for one”. It is the cry of fishermen as they draw their nets towards the shore. The same word is mentioned by everyone when a collective effort is made for the common good of all, say, building a school or helping the community.

The Coat of Arms of Kenya is the country’s formal symbol and is used by the Kenyan Government ministries and agencies, statutory and non-statutory authorities, the Parliament and law courts and tribunals.

In 2003, when Mwai Kibaki took over as President of Kenya, he immediately put into circulation the old currency Notes in the denominations of 5, 10 and 20 shillings with the portrait of Jomo Kenyatta (hitherto kept in the Bank’s vaults).

On 12.12.2003, a new Series of Bank-Notes was brought out commemorating 40 years of Kenya’ Independence, in the following denominations:

The Front of all these Notes, again, had the portrait and inscription of “the first President of Kenya Mzee Jomo Kenyatta” and the Coat of Arms of Kenya.

Also, all the Notes contain a Lion’s Head Water-Mark and electrotype of the denomination of the Note.

 A three-dimensional portrait of a lion’s head can be seen when the Note is held up to the light. Below the watermark is the value of the Note expressed in numbers which can be seen when the note is held up to the light.

Each banknote has a see-through feature which forms a complete elephant when held up to the light.

The Front of a 50 shillings Note (Shillingi Hamsini) issued on 01.04.2006 in the same design/style as the 12.12.2003 Notes). The size of the Note is 138mm x 72 mm. The colour of the Note is Brown and Green.

The Back of the above 50 shilling Note (Shillingi Hamsini) shows a theme of “Nomads with Camels in a Caravan” as well as the “Mombasa Tusks”, a monument in Mombasa as in the earlier Notes.

The Front of a 100 shillings Note (Shillingi Mia Moja) issued on 01.04.2006 in the same design/style as the 12.12.2003 Notes). The size of the Note is 141 mm x 74 mm. The colour of the Note is purple.

The Back of the above 100 shilling Note (Shillingi Mia Moja) has as its theme the “Kenyatta International Conference Centre” and the statue of Kenya’s Founding President Kenyatta and Tower and snow clad mountains.

The Front of a 200 shillings Note (Shillingi Mia Mbili) issued on 01.06.2005 in the same design/style as the 12.12.2003 Notes). The size of the Note is 144 mm x 76 mm. The colour is Brown.

The Back of the above 200 shilling Note (Shillingi Mia Mbili) has “cotton picking” as its theme and depicts cotton picking workers during a cotton harvest.

The Front of a 500 shillings Note (Shillingi Mia Tano) issued on 02.08.2004 in the same design/style as the 12.12.2003 Notes). The size of the Note is 147 mm x 78 mm. The colour is Green.

The Back of the above 500 shilling Note (Shillingi Mia Tano) has as its theme “Kenya’s National Assembly” and shows the Parliament Building in Nairobi, as in the earlier Notes. The Note also shows the traditional shield and crossed spears design taken from the Emblem of Kenya.

The Front of a 1000 shillings Note (Shillingi Elfu Moja) issued on 02.08.2004 in the same design/style as the 12.12.2003 Notes). The size of the Note is 150 mm x 80 mm. The colour of the Note is Brown.

The Back of the above 500 shilling Note (Shillingi Mia Tano) has as its central theme “a grazing Herd of Elephants”, as in the earlier Notes.

Depiction of Kenyan themes and not Individuals in future Note and coin issues:

From the above discussion, it is apparent that whomsoever is in Power, either his portrait or his mentor’s portrait was being used on the Currency Notes of Kenya from time to time, leading to a lot of criticism of partisan interests.

In 2010, the Central Bank of Kenya has revised its constitution to state that, henceforth, Currency Notes and coins issued by the Bank may bear images that depict or symbolize Kenya or its aspects, but not the portraits of any individuals.

Coins:

In 1966, the first coins were issued in the denominations of 5, 10, 25 and 50 cents and 1 and 2 shillings.

 Reverse of a 10 cents coin showing the portrait of Jomo Kenyatta.

 Obverse of the above coin. On the top periphery is mentioned "Republic of Kenya". The year of issue is mentioned as 1966 split on both sides of the emblem. The denomination of the coin "10" (in numerals) and "ten cents" (in words) is mentioned below the emblem.

 Reverse of a 50 cents coin showing the portrait of Jomo Kenyatta.

Obverse of the above coin. On the top periphery is mentioned "Republic of Kenya". The year of issue is mentioned as 1968 split on both sides of the emblem. The denomination of the coin "50" (in numerals) and "fifty cents" (in words) is mentioned below the emblem.

After 1969, 25 cent coins were not minted.

After 1971, 2 shillings coins were not minted.

In 1973 and 1985, five shillings coins were introduced.

In 1994, 10 shillings coins were introduced.

In 1998, 20 shillings coins were introduced.

From 1967 to 1978, the portrait of Mzee Jomo Kenyatta, the first President of Kenya and from 1980 to 2005, the portrait of Daniel Arap Moi figured on the reverse of the coins.

In 2003, a 40 shillings commemorative coin (bi-metallic) was issued with the portrait of President Kibaki to celebrate the fortieth anniversary of Kenyan Independence.

In 2005, a new series with the portrait of Kenyatta was again circulated in the denominations of 5, 10 20 shillings (bi-metallic) and 50 cents and 1 shilling (stainless steel).

Kenya – India An ancient Trade connection:

-     The Epic “The Priplus of the Erythraean Sea written in the First century mentions a flourishing maritime trade between the coastal port cities of Gujarat, India through the Indian Ocean.

-     This suggests that there was, indeed, a continuous trade connection between Gujarat and the Eastern Coast of Africa, dating back to the days of ancient Babylon.

-     Even in recent times, there is a recorded 500 year old (approx.) history of spice trade through the Indian Ocean primarily with Kenya, Mozambique, Tanzania and Ugabda from the ports of Gujarat – Cambay, Mandvi and Surat.

-     Recent Indian migration dates back to the 1860s when about 32000 Indian workers were brought from India, mainly from the Kutch and the Punjab, for laying a Railway Line from the port city of Mombasa on the Kenyan coast to Kampala, the capital of Uganda.

-     During 1896 to 1901, the Railway Line was laid at tremendous cost of human lives – about 2500 workers died due to construction accidents and disease and about 6500 workers were incapacitated during this process. Nevertheless, after the Railway Line was laid about 7000 Indians preferred to stay back in Kenya.

-     Several Gujarati businessmen also emigrated to Kenya through the Sea-Trade route and established trading posts and businesses/services in the entire East Africa from Kenya and Tanzania to Uganda. Through a period of time, they converted East Africa from a traditional barter society into a modern monetary economy. The British India silver and copper coins and later Indian Government currency (Rupees and paise) were increasingly being used as Indian migrants moved further West, North and South making inroads into countries like South Africa, Ghana (the coins are denominated in “pesewas” is a distortion of the term “Paise” as mentioned in a rural Indian dialect) and the Middle East – Oman etc.

-     Indian traders even learnt African languages, mainly Swahili.

-     In 1967, many Indians left Kenya after they were asked to take “work and residence permits” under the policy of Kenyanisation of economy in 1967. Presently, about 100000 Indians live in Kenya forming about 1% of the total population. Today, several successful businesses are run by Indians in important cities like Nairobi, Dar-e-Salaam etc. They also have large land-holdings and industry which generate employment for millions of native Africans and play a key role in Kenya’s economy.

( The images of the Notes shown above are from the collection of Ajit George. The images of the early coin issues are from the collection of Mr. Rajendrasinh Mohite. Article researched and scanning done by Rajeev Prasad).