Kenya Shilling Remains Stable At 107.95 Against US Dollar

The Kenyan shilling strengthened against the dollar week ending September 10 due to a slowdown in demand for hard currency.

The Kenyan shilling remained stable at 107.95 week ending July 8 as the demand for the dollar matched its supply in the local currency market.

“It exchanged at KSh 107.95 per US dollar on July 8, compared to KSh 107.92 per US dollar on July 1,” the Central Bank said in its Weekly Bulletin.

Market analysts expect the shilling to remain under pressure in 2021 besides having appreciated by 1.1 per cent against the dollar this year in comparison to the 7.7 per cent depreciation recorded in 2020.

On the other hand, Kenya’s forex reserves have kept the shilling steady helping it maintain an exchange rate of 107-108 over the past month.

According to CBK’s data, the usable foreign exchange reserves remained adequate at USD 9,590 million (5.86 months of import cover) as at July 8.  This is above the statutory requirement of maintaining at least 4.0-months of import cover, and the EAC region’s convergence criteria of 4.5-months of import cover.

Kenya Received $315.8 million in Remittances in May: CBK Report

 Equity Market

During the week, the equities market was on an upward trajectory, with NASI, NSE 25 and NSE 20 gaining by 2.3 per cent, 2.2 per cent and 1.2 per cent, respectively, taking their YTD performance to gains of 15.2 per cent, 13.3 per cent and 4.2 per cent for NASI, NSE 25 and NSE 20, respectively.

Market capitalisation also increased by 0.4 per cent. However, equity turnover and total shares traded declined by 5.3 per cent and 6.9 per cent, respectively.

Foreigners extended their dominance, accounting for 57.0 per cent of the week’s turnover. They had an overall net 0utflow position of Ksh 43.54 million and accumulated on Safaricom, while exited on EABL, KCB Group and Equity Group.