News

After showing some stability last week, the Kenya shilling yesterday exchanged at 106 to the dollar even as Central Bank of Kenya (CBK) attempted to mop up excess liquidity of Ksh14 billion to stall the drop.
Last Friday, the shilling exchanged at Ksh105.60/70 to the dollar. Since the year began the shilling has lost nearly 14.8 percent of its value against the US dollar.
Analysts attribute the fall to the strength of the US dollar globally, demand for foreign currency from telecommunications and energy firms, and Kenya’s widening current account deficit.


Other factors cited include weak foreign exchange inflows from tourists after a series of attacks by militants, and lack of striking balance between exports and imports.
However, analysts are optimistic that prudent fiscal policies by the government and CBK monetary policies will stabilize the shilling and control inflation.
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