|
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be withdrawn, the places where those notes or coins may be taken for exchange, and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. CENTRAL BANK OF
KENYA (CURRENCY HANDLING) REGULATIONS, 2008 The Central Bank of Kenya (Currency
Handling) Regulations, 2008 was published on 21st November 2008 under the Legal
Notice Number 148 in the Kenya Gazette Supplement Number 81. This set of regulations
was written embracing the use of modern technology to transport
|
|