- Data from the Central Bank of Kenya shows that the exchange rate stood at Sh130 at the close of the market on April 12.
- The shilling was at its weakest in January 2024, exchanging at Sh160 against the dollar before it appreciated to trade at 133.99 per dollar.
Image: FILE/ ENOS TECHE
The Kenya Shilling has remained above Sh130 against the US Dollar over the past three weeks to trade at Sh133.04 as of May 6, 2024.
An analysis of the exchange rate of the local currency against the foreign unit indicates that the shilling has lost Sh2.60 units against the dollar since April 12, 2024.
Data from the Central Bank of Kenya shows that the exchange rate stood at Sh130 at the close of the market on April 12.
The latest data shows that the local currency exchanged at Sh133 by the close of business on Monday, May 6.
The exchange rate has been fluctuating over that period hitting Sh131.4359 on April 18, and then losing dismally to close at Sh132.3003 on April 22 before losing again to trade at Sh133.1628 on April 24.
The rate has remained unchanged since then until now, painting a negative trajectory compared to the early weeks of April when the local currency traded at Sh127, marking a strong growth in the foreign exchange market.
The shilling was at its weakest in January 2024, exchanging at Sh160 against the dollar before it appreciated to trade at 133.99 per dollar.
The depreciation of the dollar had become a source of concern with CBK Governor Kamau Thugge indicating that they would intervene should it continue to fall beyond its expected limit.
"We’ll allow the inflows and demand and supply of foreign exchange to determine that level but we have to have the right balance," Thugge said.
"We must ensure that the exchange rate is broadly reflecting the market economic fundamentals and that the rate is that which encourages exports, that which is not punitive to imports."
A strong Shilling against the dollar would reduce manufacturing costs and subsequently lower the cost of goods.
The continued appreciation of the shilling against the dollar saw the government save Sh40 billion per every shilling.
This also impacted positively on the livelihoods of Kenyans as the petrol prices significantly dropped as compared to electricity bills.
The latest data from the Kenya National Bureau of Statistics stated that Kenya's inflation dropped to a record 24-month low in April to hit five per cent.
KNBS data adds that the housing, water, electricity, gas, and other fuels index dropped by 1.3 per cent, mainly due to a decline in the price of kerosene by 9.7 per cent.
Likewise, prices of 200 kWh and 50 kWh of electricity dropped by 6.4 per cent and 7.7 per cent, respectively.