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The Central Bank of Kenya is the only body in Kenya with the specific mandate of
issuing currency notes and coins. This mandate is prescribed under the Central Bank
of Kenya Act Cap 491 Section 4 A (1) f. The Act also sets out other provisions in
relation to Kenyan currency. The Penal Code Cap 63 Chapter XXXVI has specific provisions
in reference to offenses relating to coin and banknote currency.
Section 4 A (1) f of the Central Bank of Kenya Act mandates the Bank to issue currency
notes and coins.
Sec. 22 (1) The Bank shall have the sole right to issue notes and coins in Kenya
and, subject to subsection (4), only those notes and coins shall be legal tender
in Kenya: Provided that coins of a denomination of fifty cents shall be legal tender
only for payments up to twenty shillings, and coins of a denomination of less than
fifty cents shall be legal tender only for payments up to five shillings.
Sec. 22
(3) The Bank shall have power to withdraw any notes or coins issued by the Bank,
and the procedure for and effect of withdrawal shall be as follows:- (a) a notice
published in the Gazette, and in such other manner as the Bank considers likely
to bring that notice to the attention of the public, shall specify the is-sues,
and the denominations forming part of the issues, of notes or coins that are to
be withdrawn, the places where those notes or coins may be taken for exchange, and
the date on which those notes or coins shall cease to be legal tender; (b) the notice
given under paragraph (a) may provide that, after such period as may be specified
in the notice, the notes or coins to which the notice applies shall only be exchanged
at the head office of the Bank; (c) the notes or coins specified in a notice given
under paragraph (a) shall be exchanged at their face value for legal tender at the
places and for the periods (which shall be of reasonable duration) specified in
relation to those places in the notice, and shall cease to be legal tender on the
date specified in the notice; (d) the Bank may, by notice published in the same
manner as notice given under paragraph (a), specify a period during which notes
or coins which have ceased to be legal tender may nevertheless be exchanged at the
head office of the Bank, and after which those notes or coins shall no longer be
exchanged.
 The Penal Code has specific actions to be taken on persons violating the good
use Kenyan currency.
Sec. 364 "coin" includes any coin which is legal tender in
Kenya by virtue of the Central Bank of Kenya Act, and any coin of a foreign
Sovereign or State; "counterfeit coin" means coin not genuine but resembling
or apparently intended to resemble or pass for genuine coin; and includes genuine
coin prepared or altered so as to pass for coin of a higher denomination.
Sec. 365 Any person who makes or begins to make any counterfeit
coin is guilty of a felony and is liable to imprisonment for life.
Sec. 366 Any person who -
(a) gilds or silvers any piece of metal of a fit size or figure to be coined,
with intent that it shall be coined into counterfeit coin; or
(b) makes any piece of metal into a fit size or figure to facilitate the coining
from it of any counterfeit coin, with intent that such counterfeit coin shall
be made from it; or
(c) without lawful authority or excuse, the proof of which lies on him - (i)
buys, sells, receives, pays or disposes of any counterfeit coin at a lower rate
than it imports or is apparently intended to import, or offers to do any such
thing; or (ii) brings or receive into Kenya any counterfeit coin knowing it
to be counterfeit; or (iii) makes or mends, or begins or prepares to make or
mend, or has in his possession, or disposes of, any stamp or mould which is
adapted to make the resemblance of both or either of the sides of any coin,
or any part of either side thereof, knowing the same to be a stamp or mould,
or to be so adapted; or (iv) makes or mends, or begins or prepares to make or
mend, or has in his possession or disposes of, any tool, instrument or machine
which is adapted and intended to be used for marking coin round the edges with
marks or figures apparently resembling those on the edges of any coin, knowing
the same to be so adapted and intended; or (v) makes or mends, or begins or
prepares to make or mend, or has in his possession or disposes of, any press
for coinage, or any tool, instrument or machine which is adapted for cutting
round blanks out of gold, silver or other metal, knowing such press, tool, instrument
or machine to have been used or to be intended to be used for making any counterfeit
coin, is guilty of a felony and is liable to imprisonment for life.
Sec. 367AAny person who wilfully and without authority or excuse
defaces, tears, cuts or otherwise mutilates any currency note shall be guilty
of an offence and shall be liable to imprisonment for a term not exceeding three
months or to a fine not exceeding two thousand shillings or to both.
Sec. 368 Any person who deals with any coin in such a manner
as to diminish its weight with intent that when so dealt with it may pass as
coin is guilty of a felony and is liable to imprisonment for seven years.
Sec. 369 Any person who melts down, breaks up, defaces by stamping
thereon any name, word or mark, or uses otherwise than as currency any coin
current for the time being in Kenya is guilty of a misdemeanour and is liable
on conviction to a fine not exceeding eight thousand shillings or to imprisonment
for six months or to both.
Sec. 370 (1) Any officer of the Government or the manager of
any bank who receives, during the performance of his duties, any coin which
he has reasonable ground for believing to be counterfeit coin shall impound
the coin and transmit it to the Governor of the Central Bank of Kenya who may
cut, deface or destroy it with or without compensation, as he thinks fit if
in his opinion it is counterfeit. (2) For the purposes of this section, the
decision of the Governor of the Central Bank of Kenya that the coin is counterfeit
and that compensation shall be granted or withheld shall be final, and no person
shall be entitled to claim and no proceedings or action shall be brought against
the Governor, the Government, the officer of Government concerned, the manager
of the bank concerned or his bank in respect of any loss or damage suffered
by reason of the impounding and cutting, defacing or destruction.
Sec. 373 Any person who - (a) utters any counterfeit coin knowing
it to be counterfeit, and at the time of such uttering has in his possession
any other counterfeit coin; or (b) utters any counterfeit coin knowing it to
be counterfeit, and either on the same day or on any of the ten days next ensuing
utters any other counterfeit coin knowing it to be counterfeit; or (c) receives,
obtains or has in his possession any counterfeit coin knowing it to be counterfeit,
with intent to utter it, is guilty of a felony and is liable to imprisonment
for three years.
Sec. 375 Any person who, without lawful authority or excuse,
the proof of which lies on him, exports or puts on board of a vessel or vehicle
of any kind for the purpose of being exported any counterfeit coin whatever,
knowing it to be counterfeit , is guilty of a misdemeanour
Sec. 376 Any person who, without lawful authority or excuse,
the proof whereof lies upon him, sells or offers or exposes for sale any article
which bears a design in imitation of any currency or bank note or coin in current
use in Kenya or elsewhere is guilty of a misdemeanour and is liable to imprisonment
for six months.
 The Central Bank of Kenya (Currency Handling) Regulations, 2010 was published
on 16th July 2010 under the Legal Notice Number 124 of the Kenya Gazette Supplement.
This set of regulations was written embracing the use of modern technology to
transport currency as well as legalising the defacement of currency to specific
parties. The Regulations also prohibit the use of Currency images for promotional
purposes or otherwise other than as currency without prior approval of the Bank.
Click on the link to get a complete
version of the regulations.
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