Kenyan socialite and beauty entrepreneur Huddah Monroe has voiced her concerns regarding the recent fluctuation of the Kenyan shilling (Ksh) against the US Dollar (USD).
In a series of Instagram stories, Huddah expressed her surprise even as the shilling rallied against the dollar in the last couple of days.
"The fact that KES is now 145 to $1 is crazy considering yesterday it was 167 to $1. What are these games? I miss the days when it was Kes 80 to $1. Especially for us importers! We trade in USD!" she wrote.
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On Thursday, February 15, 2024, the dollar buying and selling rates printed at an average price of Ksh145 per dollar and Ksh148 per dollar, respectively.
The Kenya Bankers Association (KBA) has stated that the exchange rate between the US dollar and the Kenyan shilling is expected to remain unpredictable.
According to John Gachora, the KBA chair and NCBA Group Managing Director, this unpredictability is due to the forces of supply and demand.
Gachora attributed the recent rallying shilling to the government's Infrastructure Bond issuance, which saw significant interest from investors.
"Today’s move is rightly attributable to growing confidence in Kenya’s macroeconomic performance and outlook, including the recent floatation and successful pricing of a US $1.5 Eurobond and the successful issuance and sale of an 8.5-year Infrastructure Bond," Gachora stated.
On Friday, February 16, the dollar was trading at an average of Ksh150 in the morning hours before the price dropped to Ksh143 in the mid-day.
Dramatic rise in value of shilling
The significant rise in the value of the Kenyan currency against the US dollar follows the government's receipt of $1.5 billion to settle a previous Eurobond maturing on June 24, 2024.
According to reports, this move, along with the repurchase of some European bonds, has alleviated investor concerns and attracted investment into Kenya.
Additionally, the International Monetary Fund (IMF) has approved $942.2 million for Kenya under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF), with $624.5 million already accessed.
During the recent post-Monetary Policy Committee (MPC) meeting, Kamau Thugge, the Governor of the Central Bank of Kenya (CBK), noted that the stabilization of the local currency has gained momentum.
He stated that the Kenyan shilling has remained steady in recent days, attributing this to the CBK's decision to raise the Central Bank Rate from 12.5% to 13%.
