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As Germany, Britain, and France were carving up East Africa in the mid-1880s, they recognized the authority of the sultan of Zanzibar over a coastal strip 10 miles (16 km) wide between the Tana (in Kenya) and Ruvuma (in Tanzania) rivers. The hinterland, however, was divided between Britain and Germany: the British took the area north of a line running from the mouth of the Umba River, opposite Pemba Island, and skirting north of Kilimanjaro to a point where latitude 1° S cut the eastern shore of Lake Victoria; the German sphere, Tanganyika (present-day Tanzania), lay to the south of that line. In 1887 the sultan’s territory on the mainland was conceded to the British East Africa Association (later Company) for a 50-year period; this was later made a permanent grant. Because the British government was reluctant to become involved in the administration of East Africa, in 1888 it granted the company a royal charter that authorized it to accept existing and future grants and concessions relevant to the administration and development of the British sphere in that part of the world. The financial resources of the company, however, were inadequate for any large-scale development of the region. The company also administered territory in what is now Uganda; when it became involved with the kingdoms of Buganda and Bunyoro, it incurred a great debt and therefore was forced to limit its activities to regions nearer the coast. This financial problem was finally resolved in 1895 when the British government made Buganda a protectorate and paid the company £250,000 to surrender its charter to the area that is now Kenya. The East Africa Protectorate was then proclaimed, with Sir Arthur Hardinge as the first commissioner. Initially the British government did not attach much importance to the new protectorate because Hardinge continued to reside in Zanzibar, where he already functioned as the consul general.