- Gachora added that the strengthening of the dollar is attributed to growing confidence in Kenya's macroeconomic performance and outlook.
- KBA further lauded the government and CBK for their economic stewardship through a tumultuous time in the country's economic history.
Image: FILE/ ENOS TECHE
The Kenya Bankers Association (KBA) has noted that the Kenya Shilling has strengthened significantly against the US dollar.
Kenya Bankers Association (KBA) is the financial sector’s leading advocacy group and the umbrella body of the institutions licenced and regulated by the Central Bank of Kenya (CBK) with a current membership of 46 financial institutions.
KBA chair and NCBA Bank Managing Director John Gachora said by Thursday evening, market close the dollar buying and selling rates printed at an average price of Sh145 and Sh148 respectively.
He said the amount reflected the considerable gains from recent trading ranges.
"Given that Kenya liberalized its capital account in the 1990s, the exchange rate is expected to move in either direction to reflect the forces of supply and demand at any given time," he said in a statement.
Gachora added that the strengthening of the dollar is attributed to growing confidence in Kenya's macroeconomic performance and outlook.
He said that it included the recent floatation and successful pricing of a US $1.5 (Sh238 billion) Eurobond and the successful issuance and sale of an 8.5-year infrastructure Bond.
"It is instructive to note that as significant players in the domestic market, the majority of our members participated quite strongly in the Sh70 Billion Infrastructure bond, and banks hold just about 50 per cent of outstanding public debt stock," he said.
According to KBA, Data from the Central Bank of Kenya confirms that the Infrastructure bond received total bids worth Sh288 billion, and CBK accepted Sh240.9 billion with Sh218 billion in competitive bids.
He said the infrastructure bond elicited considerable foreign investor appetite, leading to the shilling rally as expected.
KBA further lauded the government and CBK for their economic stewardship through a tumultuous time in the country's economic history.
"We also commend our customers and local bank depositors for their confidence and commitment to invest in the local market."
The Kenyan shilling posted its strongest intra-day gain against the US dollar in 12 years on Wednesday.
The dramatic gain pushed the local unit to its strongest level since November last year while wiping out all the losses this year.