Kenya Shilling Gains More in Value as US Dollar Depreciates Amid Election Jitters

 

 Central Bank of Kenya (CBK) governor Kamau Thugge 

The Kenya shilling has maintained its stability against major international currencies.  The Central Bank of Kenya (CBK) reported that the shilling traded at KSh 129.20 per US dollar in the last week of October 2024, the same rate in the past few weeks. However, according to Bloomberg, the US currency declined in value against major currencies.

 The greenback's value fell in more than six weeks from September 2024 as election jitters developed among investors. Why Kenya shilling continues to gain In an exclusive interview with TUKO.co.ke, market analyst at FXPesa Kenya Rufas Kamau noted that the shilling will remain strong for a while despite slight pressure in the exchange market.

 Kamau attributed the pressure to foreign investors' repatriation of dividends and profits. "We may experience slight pressure on the exchange market as foreign investors look to repatriate dividends and profits earned from buying the NSE dip. 

However, the shilling outlook seems stable," said Kamau. CBK governor Kamau Thugge also maintained hopes of a strong shilling, attributing it to the growth in the foreign currency reserves.  CBK's foreign reserves The regulator reported 4.4 months of import cover supported by $8,586 million.

 Foreign currency reserves grew from $8,186 million, or 4.2 months of import cover, last reported at the beginning of October 2024. As of Monday, November 4, the shilling exchanged at KSh 128.65 per US dollar. 

by  Wycliffe Musalia