bushbaby,

You'll find prices locally very cheap away from the tourist trap areas. You have to remember Kenya is a very poor country (an eye opener outside of Mombasa). Sterling is accepted for exchange in hotels, US Dollars accepted in many larger establishments, but it's best to use local currency for general spending. Some things are priced in euro. Credit cards are accepted in hotels and some larger establishments, and there's cash machine available at banks. I wouldn't rely on them though.

Darren

Was there in February (not Mombasa). The only currency they would accept was dollars and Euro. Even luggage Porters wouldn't accept sterling as tips!