The Kenyan Shilling continued on a stable trajectory on Monday against the Dollar extending the record it held at the close of the previous week's trading ending Friday, September 19, 2024.
According to data from the Central Bank of Kenya(CBK), the Shilling traded at Ksh129.1962 against the Dollar, opening at almost the same rates it had closed at during the previous week.
‘’The Kenya Shilling remained stable against major international and regional currencies during the week ending September 19. It exchanged at Ksh129.20 per US Dollar on September 19, compared to KSh 129.18 per US Dollar on September 12,’’ a statement from the CBK read.
Data from the London Stock Exchange Group(LSG) also showed that the Shilling was quoted to be trading at Ksh 128.50/129.50 per Dollar by commercial banks in Kenya.
The Kenya shilling was expected to continue on the steady path on Monday and even gain more ground bolstered by the Dollar inflows from tea exporters who continued to score better at the tea auction markets.
Commercial banks also projected the exchange rates to play in between a range of Ksh 126.50 to 131.50 against the Dollar on Monday.
The shilling has been relatively stable for months now after gaining the stability pathway in the first half of 2024, largely attributed to more exports, especially with tea from the agricultural sector.
Easing concerns that Kenya would default on a 2 billion Dollar Eurobond that matured immediately in the first half of the year also boosted the shilling.
This happened even as data from the CBK indicated that foreign remittance inflows increased by 20.6 percent in 2024, a rise from USD 427.2 million(Ksh 55.7 billion) compared to USD 354.3 million (Ksh 46.3 billion) in August 2023.
CBK also attributed the increase in foreign remittance to be a contributing factor towards strengthening the Shilling as it supported the foreign exchange market.
The remittances were largely from the United States of America, accounting for 56.0 percent of the USD 427.2 million in August 2024.
Interventions in the foreign exchange market, improved remittances, and the Central Bank of Kenya monetary policy tightening is set to boost the shilling stable ranking.
