The Kenyan shilling has remained on a rise and steady against the world dollar following strategic interventions by the Central Bank
Despite the dollar climbing to a two-month high earlier in the week, the shilling held its ground, closing at Ksh129.20 against the dollar, a marginal shift from sh 129.19 the previous week.
The dollar had been gaining strength throughout the week, trading at Ksh128.50/Ksh129.50 on Thursday, marking the highest recorded exchange for the shilling. However, the US currency eased slightly on Friday, driven by profit-taking after sharp rallies against major global currencies, alongside Chinese economic data influencing the forex market.
The CBK’s stabilisation measures, including regular dollar injections into the market, helped keep the shilling’s value in check. Kenya’s Forex market has seen relative stability in recent months, thanks to increased diaspora remittances, robust tourism inflows, and higher agricultural export earnings, particularly from tea.
These factors have provided a buffer against external shocks such as political unrest and the delayed disbursement of a loan from the International Monetary Fund. As a result, the currency’s stability has relieved households burdened by rising costs.
The steady shilling has also impacted inflation positively, with September witnessing a drop in the year-on-year inflation rate to 3.6 per cent, down from 4.4 per cent in August. This decline reflects the reduced prices of imported goods, making essential commodities more affordable for Kenyans.
Additionally, the month-on-month inflation remained flat at 0.2 per cent, illustrating the benefits of a stable currency on everyday consumer expenses.
