Kenya Shilling Appreciates by 18% Against US Dollar, CBK Shares Rate Against Different Currencies

 

The Kenya shilling has stabilised against the US dollar 

Central Bank of Kenya (CBK) governor Kamau Thugge has revealed that Kenya shilling has appreciated by 18% against the United States (US) dollar. The Kenya shilling has stabilised against the US dollar. What Kamau Thugge said about Kenya shilling In a statement on Tuesday, October 16, Thugge said the shilling, in the process, became the best-performing currency against major currencies globally. "The Kenya shilling has appreciated by 18% against the US dollar becoming the best currency against major currencies globally," Thugge said, as reported by KBC. On Tuesday, October 16, the CBK quoted the shilling at 129.1987 against the greenback. 

The regulator shared the shilling's exchange rate against other local and international currencies. Currency Indicative rate US dollar 129.1987 Sterling pound 168.9208 Euro 140.6780 Japanese Yen 86.5508 Uganda shilling 28.4059 Tanzania shilling 21.0915 Rwanda franc 10.4877 South African rand 7.3316 What strong Kenya shilling means FX Pesa lead market analyst Rufas Kamau explained that strengthening the Kenya shilling was expected to weaken Kenyan exporters' business. Kamau noted that imports from the region were expected to increase. "The strengthening of the shilling against the US dollar and other foreign currencies has a net benefit for the country. 

Being a net importer, we save more money with a strong shilling compared to the value we lose through lower exports," Kamau told TUKO.co.ke. Kamau explained that the drop in the US Fed interest rate was significant to the strength of the shilling. "The Fed surprised the market with a 50 basis point rate cut to 4.75%-5% on Wednesday, September 18. This is expected to weaken the USD and could drive the Kenya shilling higher towards 120," said Kamau. How much did Kenyans send from abroad? CBK reported a strong foreign exchange reserve of USD 7,856 million, supporting four months of imports.

 This followed strong remittance inflows to the country in August 2024, as Kenyans abroad sent home over KSh 55 billion worth of dollars as the shilling stabilised. CBK noted that the remittance inflows support the current account and the foreign exchange market. The US remained Kenya's largest source of remittances, accounting for 56% in August 2024. 

by  Japhet Ruto