The
Central Bank of Kenya was established in 1966 through an Act of Parliament -
the Central Bank of Kenya Act of 1966.The establishment of the Bank was a direct result of the desire among the three East African states to have independent monetary and financial policies.
The Central Bank of Kenya Act of 1966 set out objectives and functions and gave the Central Bank limited autonomy. Since the amendment of the Central Bank of Kenya Act in April 1997, the Central Bank operations have been restructured to conform with ongoing economic reforms. There is now greater monetary autonomy.