Shela is a village about 2 miles from Lamu Town. The origin of the village is unknown, but according to tradition it was settled by people from nearby Manda Island. In 1813 the famous "Battle of Shela" took place. This was an attempt by Pate Island, allied with the Mazrui clan from Oman, to subjugate Lamu. The attempt failed totally, and the defeat of Pate at Shela signalled the rise of Lamu as the leading power in the archipelago. Shelas golden age was from 1829 to 1857, when 5 of its 6 mosques were constructed. It is especially known for the Shiathna-Asheri Mosque.
Shela is now a centre for tourism on the island, with several guest houses feature by the coast. Shela is also home to the most spectacular beaches on Lamu island, which were unfortunately damaged during the tsunami caused by the 2004 Indian Ocean earthquake. The appearance of the area is much more in keeping with the imagined East African coastline, with its almost pure white sand, traditional dhows, and clean appearance. It makes a sharp contrast to Lamu town (directly opposite the airstrip on Manda) which on first sight may shatter any romantic ideas of a coastal African paradise.