Last reviewed: 7 November 2026
Updated November 2026. These Grade 9 money notes cover currency exchange, import and export duties, excise duty and Value Added Tax (VAT). To change Kenya shillings to a foreign currency, divide by the bank’s selling rate; to change foreign currency to shillings, multiply by the buying rate. Duties and VAT are worked out as a percentage of a stated value.
All exchange rates and duty rates in the examples below are made-up figures for practice only. Real rates change, so always check a current official source. For the other Grade 9 topics, see our Grade 9 maths revision guide and the Grade 9 notes hub.
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What the Grade 9 Curriculum Covers
Money is a sub-strand under Measurements in the Kenya Institute of Curriculum Development’s Grade 9 Mathematics design. Learners convert currency, work out import, export and excise duties, and calculate VAT in day-to-day situations. The design is listed on the KICD Grade Nine curriculum designs page.
Currency Exchange
Banks and bureaus quote two rates for each currency. The buying rate is what the bank pays you in shillings for one unit of foreign currency. The selling rate is what the bank charges you in shillings for one unit. The selling rate is always higher, which is how the bank earns.
A simple rule: when the bank gives you shillings, use the buying rate and multiply. When you give the bank shillings, use the selling rate and divide.
Example (made-up rates). A bank buys one US dollar at KSh 128.50 and sells at KSh 130.00.
- A tourist changes 200 dollars into shillings: 200 × 128.50 = KSh 25,700.
- A student changes KSh 39,000 into dollars: 39,000 ÷ 130.00 = 300 dollars.
The Central Bank of Kenya publishes daily indicative rates on its foreign exchange rates page. Use it when a class activity asks for current rates.
Import and Export Duties
Import duty is a tax charged on goods brought into a country. Export duty is charged on certain goods sent out. In school questions the duty is a percentage of the value of the goods.
Example. A trader imports goods worth KSh 80,000. Import duty is 25% (a made-up rate). Duty = 25/100 × 80,000 = KSh 20,000. The goods now cost the trader 80,000 + 20,000 = KSh 100,000 before any other charges.
Excise Duty
Excise duty is charged on particular goods, such as some drinks and fuel, whether made locally or imported. Questions give either a percentage or a fixed amount per unit.
Example. A factory produces 500 litres of a drink. Excise duty is KSh 12 per litre (made-up). Total duty = 500 × 12 = KSh 6,000.
Value Added Tax (VAT)
VAT is charged on the supply of taxable goods and services. The Kenya Revenue Authority states the standard rate as 16% on its Value Added Tax page. Some supplies are zero-rated or exempt.
- Adding VAT: price before VAT KSh 2,500. VAT = 16% × 2,500 = KSh 400. Price with VAT = KSh 2,900.
- Finding the price before VAT: a receipt shows KSh 5,800 including 16% VAT. Price before VAT = 5,800 ÷ 1.16 = KSh 5,000, so VAT = KSh 800.
A common error is taking 16% of the VAT-inclusive price. That gives 928, which is wrong, because the 16% was added to the price before VAT.
Original Practice Questions With Worked Answers
- A bank buys the euro at KSh 140.80 and sells at KSh 142.40 (made-up). How many shillings does a visitor get for 125 euros?
Answer: 125 × 140.80 = KSh 17,600. - Using the same rates, how many euros can be bought with KSh 28,480?
Answer: 28,480 ÷ 142.40 = 200 euros. - Goods worth KSh 64,000 attract 10% import duty (made-up). Find the duty.
Answer: 0.10 × 64,000 = KSh 6,400. - A phone costs KSh 15,000 before VAT. Find its price with 16% VAT.
Answer: 15,000 × 1.16 = KSh 17,400. - A bill of KSh 3,480 includes 16% VAT. Find the VAT.
Answer: 3,480 ÷ 1.16 = 3,000, so VAT = 3,480 − 3,000 = KSh 480.
For percentages used in profit and loss, see our Grade 7 profit, loss and discount notes. For daily practice across subjects, a Day Pass (KSh 20) or Monthly Pass (KSh 500) opens the full question bank.
Frequently Asked Questions
Which rate do I use to change shillings into dollars?
Use the bank’s selling rate and divide the shillings by it, because the bank is selling you dollars.
What is the VAT rate in Kenya?
The Kenya Revenue Authority gives the standard VAT rate as 16%. Some goods and services are zero-rated or exempt.
How do I remove VAT from a total price?
Divide the VAT-inclusive price by 1.16 to get the price before VAT, then subtract to find the VAT.
What is the difference between excise duty and import duty?
Import duty is charged on goods entering the country. Excise duty is charged on particular goods such as some drinks and fuel, whether they are made locally or imported.
Ten-minute check: try the free Grade 9 CBC Challenge. It has 10 questions, each marked on the spot with the working, and it shows which topics to practise next.