East African shilling
Encyclopedia
The shilling
was the currency
issued for use in British
controlled areas in East Africa
from 1921 until 1969. It was produced by the East African Currency Board
. It is also the proposed name for a common currency that the East African Community
plans to introduce.
was originally divided into twenty shillings, and it is normal to consider the shilling sterling
to be a subsidiary unit of the pound. However, in British East Africa, even though twenty shillings were equal in value to one pound sterling
, the shilling was always taken to be the primary unit of account. This state of affairs was unique amongst all the parts of the British Empire that used the sterling
currency.
This anomalous state of affairs arose because British East Africa was actually originally in the rupee
zone and not in the sterling
zone. The East African shilling was introduced to Kenya
, Tanganyika
(now mainland Tanzania
), and Uganda
in 1921, replacing the short-lived florin
at a rate of 2 shillings = 1 florin. The short lived Florin had been brought about as a result of the rising price of silver which occurred in the wake of World War I
. At that time, the Indian Rupee was the currency of the British East African states. The Rupee, being a silver coin rose in value against sterling. When it reached the value of two shillings, the authorities decided to replace it with the Florin. From the florin thence came the East African shilling. The currency remained pegged to one shilling sterling
and was subdivided into 100 cent
s. In 1936, Zanzibar
joined the currency board, and the Zanzibari rupee
was replaced at a rate of 1.5 East African shillings = 1 Zanzibari rupee. It was replaced by local currencies (Kenyan shilling
, Ugandan shilling
and Tanzanian shilingi) following the colonies' independence.
In 1951, the East African shilling replaced the Indian Rupee
in the Aden colony and protectorate, which became the South Arabian Federation in 1963. In 1965, the East African Currency Board was breaking up, and the South Arabian dinar replaced the shilling in the South Arabian Federation at a rate of 20 shillings to 1 dinar.
The shilling was also used in parts of what is now Somalia
, Ethiopia
and Eritrea
when they were under British control. Before 1941, these areas, then known as Italian East Africa
were using the Italian East African lira
. In 1941, as a result of World War II
, Britain regained control and introduced the shilling, at a rate of 1 shilling to 24 lira. Italian Somaliland
was returned to Italy
in 1949 as a UN Trusteeship and soon switched to the Italian Somaliland somalo
, which was at par with the shilling. British Somaliland
gained independence in 1960, and joined what had been Italian Somaliland to create Somalia
. Somalia used the Somali shilling
which was at par with the East African shilling, with the East African shilling losing legal tender status in 1961. Ethiopia regained independence in 1941, with British support and began using the East African shilling. Maria Theresa Thalers
, Indian rupees, and Egyptian pound
were also legal tender at the beginning of this time, and it is unclear exactly when this status ended. Full sovereignty was restored in late 1944, and the Ethiopian birr
was reintroduced in 1945 at a rate of 1 birr = 2 shillings. Eritrea was captured from the Italians in 1941, and began using the East African shilling, as well as the Egyptian pound, with the lira demonetized in 1942. When Eritrea formed a federation with Ethiopia in 1952, the birr, which was already in use in Ethiopia, was adopted in Eritrea.
For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.
, which consists of Kenya
, Tanzania
, Uganda
, Rwanda
, and Burundi
.
Previously, it was estimated that the Second East African shilling would be introduced into circulation in 2012 but the studies that are currently guiding the process propose 2015 — although officials from the European Union predict it will take longer.
were issued by the East African Currency Board in denominations of 5, 10, 20, 100, 200, 1,000 and 10,000 shillings, with the notes of 20 shillings and above also carrying the denominations given in pounds Sterling
(£1, £5, £10, £50 and £500). In 1943, 1 shilling notes were issued, the only occasion that such notes were produced. 1,000 shilling notes were only issued until 1933, with 10,000 shillings notes last issued in 1947. The remaining denominations were issued until 1964.
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Shilling (disambiguation)
The shilling was a coin used in British Commonwealth countries and was continued to be used in countries that left the commonwealth, such as Ireland and Tanzania...
was the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
issued for use in British
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
controlled areas in East Africa
East Africa
East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:...
from 1921 until 1969. It was produced by the East African Currency Board
East African Currency Board
The East African Currency Board supplied and oversaw the currency of British colonies in East Africa from 1919 to 1966. It was established after Britain took control of mainland Tanzania from Germany at the end of World War I, and originally oversaw the territories of Uganda, Kenya, and Tanzania ....
. It is also the proposed name for a common currency that the East African Community
East African Community
The East African Community is an intergovernmental organisation comprising the five east African countries Burundi, Kenya, Rwanda, Tanzania, and Uganda. Pierre Nkurunziza, the President of the Republic of Burundi, is the current Chairman of the East African Community. The EAC was originally...
plans to introduce.
First East African shilling
The pound sterlingPound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
was originally divided into twenty shillings, and it is normal to consider the shilling sterling
Sterling
Sterling may refer to:* Sterling silver, a grade of silver* Pound sterling, the currency of the United Kingdom- Businesses :* Hotel Sterling, a former hotel in Wilkes-Barre, Pennsylvania, United States* Sterling Airlines...
to be a subsidiary unit of the pound. However, in British East Africa, even though twenty shillings were equal in value to one pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
, the shilling was always taken to be the primary unit of account. This state of affairs was unique amongst all the parts of the British Empire that used the sterling
Sterling
Sterling may refer to:* Sterling silver, a grade of silver* Pound sterling, the currency of the United Kingdom- Businesses :* Hotel Sterling, a former hotel in Wilkes-Barre, Pennsylvania, United States* Sterling Airlines...
currency.
This anomalous state of affairs arose because British East Africa was actually originally in the rupee
Rupee
The rupee is the common name for the monetary unit of account in India, Sri Lanka, Nepal, Pakistan, Mauritius, Seychelles, Maldives, and formerly in Burma, and Afghanistan. Historically, the first currency called "rupee" was introduced in the 16th century...
zone and not in the sterling
Sterling
Sterling may refer to:* Sterling silver, a grade of silver* Pound sterling, the currency of the United Kingdom- Businesses :* Hotel Sterling, a former hotel in Wilkes-Barre, Pennsylvania, United States* Sterling Airlines...
zone. The East African shilling was introduced to Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, Tanganyika
Tanganyika
Tanganyika , later formally the Republic of Tanganyika, was a sovereign state in East Africa from 1961 to 1964. It was situated between the Indian Ocean and the African Great Lakes of Lake Victoria, Lake Malawi and Lake Tanganyika...
(now mainland Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
), and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
in 1921, replacing the short-lived florin
East African florin
The florin was the currency of the British colonies and protectorates of East Africa between 1920 and 1921. It was divided into 100 cents. It replaced the rupee at par and was replaced by the shilling at a rate of 2 shillings = 1 florin...
at a rate of 2 shillings = 1 florin. The short lived Florin had been brought about as a result of the rising price of silver which occurred in the wake of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. At that time, the Indian Rupee was the currency of the British East African states. The Rupee, being a silver coin rose in value against sterling. When it reached the value of two shillings, the authorities decided to replace it with the Florin. From the florin thence came the East African shilling. The currency remained pegged to one shilling sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
and was subdivided into 100 cent
Cent (currency)
In many national currencies, the cent is a monetary unit that equals 1⁄100 of the basic monetary unit. Etymologically, the word cent derives from the Latin word "centum" meaning hundred. Cent also refers to a coin which is worth one cent....
s. In 1936, Zanzibar
Zanzibar
Zanzibar ,Persian: زنگبار, from suffix bār: "coast" and Zangi: "bruin" ; is a semi-autonomous part of Tanzania, in East Africa. It comprises the Zanzibar Archipelago in the Indian Ocean, off the coast of the mainland, and consists of numerous small islands and two large ones: Unguja , and Pemba...
joined the currency board, and the Zanzibari rupee
Zanzibari rupee
The rupee was the currency of Zanzibar from 1908 to December 31, 1935. It was subdivided into 100 cents .-History:The rupee replaced the Zanzibari ryal at a rate of 2⅛ rupees = 1 ryal and was equivalent to the Indian rupee, which was also in circulation...
was replaced at a rate of 1.5 East African shillings = 1 Zanzibari rupee. It was replaced by local currencies (Kenyan shilling
Kenyan shilling
The shilling is the currency of Kenya. It is divisible into 100 cents.-Coins:The first coins were issued in 1966 in denominations of 5, 10, 25 and 50 cents, and 1 and 2 shillings. Twenty-five cents coins were not minted after 1969; 2 shillings coins were last minted in 1971...
, Ugandan shilling
Ugandan shilling
The Shilling is the currency of Uganda. Technically, the shilling is subdivided into 100 cents but no subdivisions have been issued since the revaluation of the shilling in 1987.-History:...
and Tanzanian shilingi) following the colonies' independence.
In 1951, the East African shilling replaced the Indian Rupee
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
in the Aden colony and protectorate, which became the South Arabian Federation in 1963. In 1965, the East African Currency Board was breaking up, and the South Arabian dinar replaced the shilling in the South Arabian Federation at a rate of 20 shillings to 1 dinar.
The shilling was also used in parts of what is now Somalia
Somalia
Somalia , officially the Somali Republic and formerly known as the Somali Democratic Republic under Socialist rule, is a country located in the Horn of Africa. Since the outbreak of the Somali Civil War in 1991 there has been no central government control over most of the country's territory...
, Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
and Eritrea
Eritrea
Eritrea , officially the State of Eritrea, is a country in the Horn of Africa. Eritrea derives it's name from the Greek word Erethria, meaning 'red land'. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast...
when they were under British control. Before 1941, these areas, then known as Italian East Africa
Italian East Africa
Italian East Africa was an Italian colonial administrative subdivision established in 1936, resulting from the merger of the Ethiopian Empire with the old colonies of Italian Somaliland and Italian Eritrea. In August 1940, British Somaliland was conquered and annexed to Italian East Africa...
were using the Italian East African lira
Italian East African lira
The lira was the currency of Italian East Africa between 1938 and 1941. It was equivalent to the Italian lira and Italian currency circulated, together with banknotes first issued in 1938. In Italian Somaliland, the lira was already circulating...
. In 1941, as a result of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, Britain regained control and introduced the shilling, at a rate of 1 shilling to 24 lira. Italian Somaliland
Italian Somaliland
Italian Somaliland , also known as Italian Somalia, was a colony of the Kingdom of Italy from the 1880s until 1936 in the region of modern-day Somalia. Ruled in the 19th century by the Somali Sultanate of Hobyo and the Majeerteen Sultanate, the territory was later acquired by Italy through various...
was returned to Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
in 1949 as a UN Trusteeship and soon switched to the Italian Somaliland somalo
Italian Somaliland somalo
The somalo was the currency of the Trust Territory of Somalia between 1950 and 1962. It was subdivided into 100 centesimi .-History:...
, which was at par with the shilling. British Somaliland
British Somaliland
British Somaliland was a British protectorate in the northern part of present-day Somalia. For much of its existence, British Somaliland was bordered by French Somaliland, Ethiopia, and Italian Somaliland. From 1940 to 1941, it was occupied by the Italians and was part of Italian East Africa...
gained independence in 1960, and joined what had been Italian Somaliland to create Somalia
Somalia
Somalia , officially the Somali Republic and formerly known as the Somali Democratic Republic under Socialist rule, is a country located in the Horn of Africa. Since the outbreak of the Somali Civil War in 1991 there has been no central government control over most of the country's territory...
. Somalia used the Somali shilling
Somali shilling
The Somali shilling is the official currency of Somalia...
which was at par with the East African shilling, with the East African shilling losing legal tender status in 1961. Ethiopia regained independence in 1941, with British support and began using the East African shilling. Maria Theresa Thalers
Maria Theresa thaler
The Maria Theresa thaler is a silver bullion-coin that has been used in world trade continuously. Maria Theresa Thalers were first minted in 1741, using the then Reichsthaler standard of 9 thalers to the Vienna mark. In 1750 the thaler was debased to 10 thalers to the Vienna Mark...
, Indian rupees, and Egyptian pound
Egyptian pound
The Egyptian Pound is the currency of Egypt. It is divided into 100 Qirsh , or 1,000 Milliemes ....
were also legal tender at the beginning of this time, and it is unclear exactly when this status ended. Full sovereignty was restored in late 1944, and the Ethiopian birr
Ethiopian birr
The birr is the unit of currency in Ethiopia. Before 1976, dollar was the official English translation of birr. Today, it is officially birr in English as well....
was reintroduced in 1945 at a rate of 1 birr = 2 shillings. Eritrea was captured from the Italians in 1941, and began using the East African shilling, as well as the Egyptian pound, with the lira demonetized in 1942. When Eritrea formed a federation with Ethiopia in 1952, the birr, which was already in use in Ethiopia, was adopted in Eritrea.
For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.
Second East African shilling
A new version of the currency is proposed by the East African CommunityEast African Community
The East African Community is an intergovernmental organisation comprising the five east African countries Burundi, Kenya, Rwanda, Tanzania, and Uganda. Pierre Nkurunziza, the President of the Republic of Burundi, is the current Chairman of the East African Community. The EAC was originally...
, which consists of Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
, Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
, and Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
.
Previously, it was estimated that the Second East African shilling would be introduced into circulation in 2012 but the studies that are currently guiding the process propose 2015 — although officials from the European Union predict it will take longer.
Coins
In 1921, holed, bronze 5 and 10 cents and silver 50 cents and 1 shilling coins were introduced. Holed, bronze 1 cent coins followed in 1922. Silver was replaced by cupro-nickel in 1948. The last coins struck in the name of East Africa were produced in 1964, by which time the colonies had gained independence.Banknotes
In 1921, notesBanknote
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
were issued by the East African Currency Board in denominations of 5, 10, 20, 100, 200, 1,000 and 10,000 shillings, with the notes of 20 shillings and above also carrying the denominations given in pounds Sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
(£1, £5, £10, £50 and £500). In 1943, 1 shilling notes were issued, the only occasion that such notes were produced. 1,000 shilling notes were only issued until 1933, with 10,000 shillings notes last issued in 1947. The remaining denominations were issued until 1964.
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