The Business Insider has rated the Kenyan Shilling as the best currency in Africa following the 15-month growth streak that it has had.
According to a report by the New York City-based multinational financial and business website, the Shilling has risen historically to levels that have not been witnessed in over a year.
The currency, which is currently trading at Ksh128 against the US Dollar, has made strong gains to rise to a level at which it only traded in March 2023 before taking on a downward spiral.
“The Kenyan shilling has recently risen to levels not seen in over a year. The currency rose to a 15-month high against the US dollar. The last time the currency was this strong was in March 2023. From Ksh161/$ to now Ksh128.66/$, the Kenyan Shilling remains one of the best-performing currencies on the continent,” reported the Business Insider.
This rating of the shilling as the top-performing shilling in Africa follows a similar rating by the World Bank in April this year.
The shilling began its upward trajectory in February 2024, after the floating of a $2 billion Eurobond oversubscribed by investors.
According to the Bankers’ Association, the oversubscription of the Eurobond reignited Confidence in investors prompting the growth of the shilling.
Further, the 15-month growth spike has also been attributed to the increased inflows of foreign exchange in the exports of tea and coffee.
Additionally, an increase in diaspora remittances in 2024 has been another factor attributed to the growth of the shilling against the greenback.
In January this year, the remittances hit a high of Ksh53.8 billion (USD 412.4M), with the growth trajectory continuing in recent months.
However, speaking on the shilling’s performance, the Central Bank Governor, Kamau Thugge at a Monetary Policy Committee’s meeting in June stated that the shilling was expected to remain steady without further declines or increases.
We don't see significant weakening or significant strengthening, there should now be stability in the exchange rates,” Thugge reiterated.
