The Kenyan shilling has continued to stabilise despite the ongoing anti-government protests which have affected a few investors.
Data from Bloomberg on Monday indicated that the shilling remained the best-performing currency in the continent despite the recent weakening against the US dollar.
The data revealed that the drop in the past nine days was the longest decline since January this year. Additionally, the drop seen last week was the largest since April.
A financial analyst who spoke to the publication lamented that the ongoing demonstration had resulted in disruption in business activities.
"Demonstrations by Kenya's Gen Zs demanding proper governance have aggregated the situation by creating uncertainties in the economy and causing disruption in business activities," the analyst.
Per Bloomberg, these fluctuations in the shilling had spooked investors who fear that the protests may be bad for business in the long run.
Notably, data from the Central Bank of Kenya (CBK) on Monday showed that the shilling traded at Ksh130.72 against the US dollar, Ksh168.83 against the sterling pound, and Ksh142.29 against the Euro.
The publication also added that the cause for the weakening of the shilling in the past few days despite the protests was the fluctuating inflation and high import costs.
Additionally, Bloomberg explained that in mid-February the shilling strengthened after the government bought back part of a Eurobond that expired in June.
In January and early February, the shilling hit its lowest against the dollar trading at over Ksh160. This weakening of the shilling increased the cost of basic commodities.
"I want to encourage Kenyans if you're holding any dollar because you fear the Eurobond, please note that now the risk of failure to settle the Eurobond is gone and so you need to get back to business sell your dollars and get back to business don't do any speculation anymore," Treasury Principal Secretary Chris Kiptoo stated in February.
In May analysts from the Economic Intelligence Unit (EIU) predicted that in September the shilling will trade at Ksh100 or lower. This will be due to the changes by the US Federal Reserve on the policy rate.
