The East African Currency Board (E.A.C.B.) was established in December 1919 after World War 1. The regulations stated that it had been constituted to provide for and control the supply of currency. Originally the E.A.C.B. operated on mainland Tanzania (then Tanganyika), Kenya and Uganda. Zanzibar adopted the currency in 1936. The common monetary system also operated in British Somaliland and the Aden Protectorate subsequent to independence of India (1947). Board currency was essentially issued in exchange for pounds sterling.

The E.A.C.B. played a purely passive role in monetary policies and had no influence to regulate the activities of commercial banks. Commercial banking was introduced into the East African Region towards the end of the 19th Century. There initial establishment was aimed at linking business between Europe, South Africa and India. However the effects of their actions was to stimulate the local economy so that funds became available to pioneer traders and settlers who came to the region. Then came the proceeds of trade from the primary commodities, which encouraged the spread of banking into the internal regions.

The EACB stopped functioning in 1966 when the Central Banks of Kenya, Tanzania and Uganda came into existence.