Overview
By law, the Central Bank of Kenya is the only institution in the country that can issue currency.The Central Bank of Kenya’s (CBK) mandate to issue currency is enshrined in Article 231(2) of the Kenyan Constitution and Section 22(2) of the Central Bank of Kenya Act. This article and section grant the CBK the sole authority to print and mint Kenyan currency.
To successfully accomplish this mandate, the Central Bank ensures that it procures adequate and secure currency for distribution to meet the country’s needs.
Notes and Coins
overview
The Central Bank of Kenya is the only institution in Kenya with full discretion and sole rights to issue currency notes and coins. The mandate is enshrined in Article 231 (2) of Kenya’s Constitution and the Central Bank of Kenya Act, Section 4 A (1) f. This mandate involves the following responsibilities:
- Planning, forecasting, procuring and distributing currency notes and coins.
- Setting up suitable currency distribution mechanisms.
- Safeguarding the integrity of Kenyan currency as a medium of exchange.
- Developing policies for proper handling.
Currency Design and Counterfeit Deterrence
The Bank supplies banknotes and coins to the Kenyan economic system in bulk while also destroying banknotes and coins that can no longer be used. Notes and coins identified for destruction are selected from what the commercial banks have deposited to the Bank. The Bank also manages the design of its currency and follows through the printing (for banknotes) and minting (for coins) process from the time orders are placed.
It is the Bank’s objective to have only good quality currency circulation and this is achieved by setting quality standards for currency in circulation. The current standards were issued on July 14, 2008, under the Amended Banking Circular Number 4 of 2008. These standards predominantly guide commercial banks and other bulk cash handling bodies on how to sort currency.
Currency Design and Counterfeit Deterrence
The Bank designs its currencies with stakeholder engagements forming a critical part of the process. These engagements result in identifying concepts that depict the country and will be used in the currencies to be issued.
On finalisation of the designs, the Bank procures its currencies in compliance with the Public Procurement Act.
Currency in Circulation
The Central Bank of Kenya began printing Kenyan banknotes in 1966 under the mandate given in the Central Bank of Kenya Act cap 491. The initial issue of Kenya shilling notes were in the denominations of 5, 10, 20, 50 and 100 shillings, all bearing the portrait of the First President of Kenya, H.E. Mzee Jomo Kenyatta on the front, and diverse scenes of economic activities in Kenya on the back.
Various other currencies have since been issued to circulation. The current generation of Kenyan banknotes range from denominations 50, 100, 200, 500 and 1,000 shillings while that of coins range from 50 cents, 1, 5, 10, 20 and 40 shillings. In December 2018 and June 2019, coins and banknotes with new security features to meet the 2010 Constitutional requirements were issued respectively.
View updated series of banknotes.
Counterfeit Detection
In the currency design process, Kenya’s currency adopts internationally recognised security features that make it difficult to counterfeit. These features also make it easier for the general public to identify counterfeit currency.
Currency Operations
Commercial banks regularly make deposits of bank notes and coins to their accounts in the Central Bank, where they are processed and sorted. The Central Bank maintains specialised machines that are used to process banknotes and coins, and those that are fit for circulation are set aside for re-distribution.
In its role of issuing currency, the Central Bank must also ensure that currency is distributed throughout the country. To accomplish this, the Central Bank has Branches in Mombasa, Kisumu and Eldoret and Centres in Nyeri, Nakuru, Meru and Kisii. These Branches and Centres form a key focal point for currency distribution to the local financial institutions.
Damaged Currency
Currency is considered damaged or unfit when it is mutilated, torn or marked with ink. It is typically removed from circulation when it is brought into the Central Bank, through deposits from commercial banks, and sorted out from fit currency. However, members of the general public who find damaged currency can also bring it to commercial banks or to the Central Bank offices and have it replaced, on condition that the following requirements are met:
- They have not been deliberately mutilated
- The currency must be genuine
- The currency must be more than half and continuous
- The banknote should bear at least one complete serial number
Damaged Currency
Currency is considered damaged or unfit when it is mutilated, torn or marked with ink. It is typically removed from circulation when it is brought into the Central Bank, through deposits from commercial banks, and sorted out from fit currency. However, members of the general public who find damaged currency can also bring it to commercial banks or to the Central Bank offices and have it replaced, on condition that the following requirements are met:
- Not deliberately mutilated
- Currency must be genuine
- More than half and continuous
- Bear at least one complete serial number
In case of coins, the inner part of coin for coins with outer bordering rings i.e. 10/=, 20/= and 40/=.
The Bank is not obliged to exchange any damaged currency. Any banknotes and coins presented for exchange will be carefully examined by the Bank. The Bank may seek to know from the presenter how the notes and coins were damaged.
No counterfeit currency will be exchanged for any value whatsoever.
Commemorative Currency
The Central Bank issues commemorative currency to mark national or Central Bank occasions and anniversaries. These currencies are availed for sale at the Bank when in stock.
To purchase commemorative coins, please download the Commemorative Coin Order Form here and contact the Central Bank head office at comms@centralbank.go.ke or your nearest Central Bank Branch or Currency Centre.
