The Kenyan currency depreciated by 2 per cent to an all-time low of 106.8 against the US dollar in the inter-bank market on Monday.
Last week it appreciated marginally at Ksh 105.91 per US dollar.
According to analysts, the slowdown in foreign dollar currency inflows from diaspora remittances and fewer offshore investors to meet dollar demand is likely to keep mounting pressure on the local currency.
AIB Capital Ltd is of the view, “The decline in the shilling indicates that there is a higher demand for the greenback (dollar). Stabilization of the shilling is also crucial in determining the price and the volume imported from trade partners.”
