Kenya’s Shilling Gains 0.1% on Lacklustre Demand for Dollars

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

It closed the week at Kshs 109.9, from Kshs 110.0 recorded the previous week a 0.1 per cent gain.

“The Kenya Shilling remained stable against major international and regional currencies during the week ending September 9,” the Central Bank said.

However, on a Year to Date (YTD) basis, the shilling has depreciated by 0.6 per cent against the dollar, in comparison to the 7.7 per cent depreciation recorded in 2020.

forex reserves up 8.4%

In the week, foreign exchange reserves climbed by USD  746 million to USD 9,629 million sufficient to cover more than five months of imports, according to central bank data.

The surge was attributed to due to the twenty-one-year infrastructure bond inflows that closed last week. Its issuance attracted a subscription worth Ksh 151 billion with Ksh 106 billion being accepted.

“Treasury has now raised KSh278 billion since the fiscal year began in July, representing 42.2 per cent of the year’s net target of KSh658.8 billion. This is likely to reduce pressure on government’s borrowing,” said analysts at AIB-AXYS Africa.