The Kenya shilling continued on the stability path on Monday against global currencies, further boosting Kenya’s currency confidence across the globe and in particular, against the dollar.
The strengthening of the shilling was majorly attributed to financial inflows from the tea sector, specifically from the exports.
Kenya’s shilling was steady on Monday and was expected to gain ground, bolstered by dollar inflows from tea exporters, traders revealed.
Commercial banks quoted the shilling at Ksh128.50 and Ksh129.50 against the dollar on Monday morning September 16, 2024, opening at the same rate as it was on Friday, September 13, 2024.
Kenyans waiting in line at a local bank
Daily Nation
However, on Friday, there were fears by traders that the shilling could dip further due to an increased demand for foreign currency by fuel importers and manufacturers.
Kenya’s tea top world destination is Pakistan where figures from the Treasury continued to report significant growth with a record increase of 10.6 per cent in the months leading to the first half of June 2024.
The shilling has been on a steady strengthening following a drop from July 23, 2024, when it slightly weakened to Ksh131.8 against the dollar according to Forbes.
The shilling is expected to continue strengthening against the dollar following an extended period of stability together with other factors.
Reuters also reported that traders forecast the shilling to remain stable in the upcoming week, following its strong rally earlier this year.
The rally was attributed to easing concerns over a potential default by Kenya on a $2 billion Eurobond that was due in June this year.
However, the move by the government to offset the $2 billion (Ksh258 billion) Eurobond eased jitters among investors who initially doubted the country’s ability to repay the debt.
The Central Bank of Kenya projects that the shilling will continue on the stability path occasioned by the increased demand for agricultural products especially tea and coffee.
A photo collage of Central Bank of Kenya governor and shilling notes and coins
Photo
CBK
