Kenya shilling rises to year high of 130 against US Dollar

NAIROBI, Kenya | Xinhua | The Kenya shilling strengthened against the U.S. dollar Friday to close the week at the 130 mark, the strongest level in about a year.

The Central Bank of Kenya (CBK) quoted the local unit at 130.7 shillings against the dollar Friday, as the local currency continued to gain ground against the greenback and other major regional and international currencies like the pound sterling and euro.

The last time the shilling exchanged against the dollar at that level was on March 22, 2023, before it started a steady decline to fall to 162, the worst level in the East African nation’s currency history.

The surge in the shilling is attributed to an increase in dollar inflows from the International Monetary Fund (IMF) as well as foreigners investing in Kenya’s debt market.

CBK Governor Kamau Thugge on Thursday attributed the strengthening of the shilling to stronger foreign exchange reserves which currently stand at 7.136 billion dollars (3.77 months of import cover), providing adequate cover and buffer against short-term shocks in the foreign exchange market.

Thugge said he expects the currency to strengthen further, but the bank would allow the exchange rate to find its equilibrium. ■