CBK Governor Patrick Njoroge yesterday appeared before the Senate committee on Finance, Commerce and Budget to explain the shilling’s poor performance against the dollar and other major world currencies.
During the session, Njoroge expressed optimism that the shilling would pick up, most especially after President Barrack Obama’s visit for the Global entrepreneurship Summit.
Njoroge said that the attendance of top entrepreneurs during the summit will boost the confidence of foreign and local investors, strengthening the shilling.
He said the move to increase the lending rates in the country was part of measures being taken to improve the shilling's value.
According to Njoroge, factors such as a weakening of earnings from traditional exports like tea, coffee and horticulture over the recent past had left the shilling exposed.
He added that the drop in tourism has also contributed to the fall in value of the shilling.
The shilling has been performing poorly over the past few months.
Today it is trading at 102 against the dollar.
Today's opening indicative rates; US Dollar - 102.04, STG Pound - 158.98, and Euro - 113.04.
— Central Bank Kenya (@CbkKenya) July 28, 2015