The Kenyan shilling has stabilized, according to the latest report from the London Stock Exchange Group on October 14.
According to the group, at 09:57 EAT, the shilling traded at 128.50/129.50 against the dollar, similar to Friday’s closing rate.
The Kenyan shilling has shown strong performance over the past few months.
This improvement began earlier this year when the government issued a new $1.5 billion Eurobond.
Kenyan shilling gains momentum
The proceeds from this bond were used to repurchase a significant portion of a $2 billion bond that was set to mature in June, which had previously caused concern among investors.
President Wiliam Ruto had promised Kenyans that his administration would prioritize the stabilization of the shilling through a raft of measures.
Earlier this year on the month of February, the President commended Kenya’s performance at the Forex market where the Kenya shilling had started to stabilize.
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At the time, the Kenya shilling was trading at Ksh 155.5 against the US dollar.
Addressing a public gathering at the time, Ruto said the appreciation of the shilling is part of his administration’s strategy to revive and stabilize Kenya’s economy.
“We have started to reshape the economy. I have planned for this in the last year. I assure you we will deal with debts since Monday, the economy has been stabilizing.
Factors making the Shilling rise
“We recently invited bids for the Eurobond, and we have received enough money to repay our debts. You will be shocked by the way the shilling is strengthening against the US dollar,” said Ruto.
According to Central Bank of Kenya Governor, Kamau Thugge, the Central Bank purchased dollars from the market to ensure that the Kenyan Shilling remained stable against the US currency.
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Additionally, the CBK boss attributed the rise of the shilling to the local currency’s stability to dollar inflows from diaspora remittances which have significantly boosted the forex reserves.
The Governor also credited the increase in dollar inflows from the tea sector in the Kenya shilling gaining momentum.
Moreover, Thugge said international funding from organizations like the International Monetary Fund (IMF) and the World Bank has boosted the country’s foreign reserves further improving the value of the local currency.
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President William Ruto (right) and IMF Managing Director Kristalina Georgieva shake hands in a past meeting. PHOTO/PCS
