The Kenyan Shilling is the official currency of Kenya, an East African nation that lies on the equator, with the Indian Ocean to its south-east. It is bordered by Tanzania to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to the north, and Somalia to the north-east.
Economy
Kenya has traditionally been a liberal market with minimal government involvement (such as price controls) in the oil industry. However, recent legislation allows the government to establish price controls for staples such as maize flour, kerosene, and cooking oil.
Since May 2010, the economic outlook has been positive, with 4-5% GDP growth expected due to the expansion of tourism, telecommunications, transportation, and construction, as well as a recovery in the agriculture sector.
The World Bank predicts 4% growth in 2010 and potential growth of 4.9% in 2011.
In March, 1996 the presidents of Kenya, Tanzania, and Uganda re-established the East African Community (EAC). The objectives of the EAC include harmonizing tariffs and customs regulations, free movement of people, and improvement of regional infrastructures.
In March 2004, the three East African countries signed a customs union.
History
In 1966, the Kenyan Shilling replaced the East African Shilling at par. The first coins were issued that year in denominations of 5, 10, 25, and 50 cents and 1 and 2 shillings.
Twenty-five cents coins were minted after 1969, and 2-shilling coins in 1971.
In 1985, 5-shilling coins were introduced, followed by 10-shilling coins in 1994 and 20-shilling coins in 1998.
Between 1967 and 1978, the portrait of Jomo Kenyatta, Kenya's first president, appeared on the front of the currency.
From 1980 to 2005, a portrait of Daniel arap Moi replaced Kenyatta.
In 2005 the central bank introduced a number of new coins that restored the portrait of Kenyatta. The stainless steel coins are valued at 50 cents and 1 shilling and the bimetallic coins at 5, 10, and 20 shillings.
In 2003, a bi-metallic 40-shilling coin was issued with the portrait of President Kibaki to commemorate the fortieth anniversary of independence (1963-2003).
New coins with the image of Kenyatta were minted in 2005.
