The Central Bank of Kenya was established in 1966.
It was created after Kenya became independent in 1963 and the East African Currency Board was replaced by national monetary institutions. The bank was established by the Central Bank of Kenya Act of 1966, giving the country its own authority over currency and monetary policy. Its headquarters are in Nairobi.
The Central Bank of Kenya issues Kenyan currency, formulates and implements monetary policy, regulates and supervises banks, manages foreign-exchange reserves and acts as banker and adviser to the government. It also oversees payment systems and works to promote financial stability.
A common mix-up is confusing the bank with the East African Central Bank, which was proposed in a broader regional framework. Kenya's national institution is responsible for the Kenyan shilling. The bank's governor is appointed under Kenya's constitutional and statutory framework, and its work is closely tied to inflation and exchange-rate conditions.