The Kenyan shilling has continued its upward trajectory against the dollar, reaching a trading rate of Sh131.80 on Wednesday. This marks a significant strengthening of the currency, which has also recorded gains against other major currencies, according to commercial banks. As of the closing of the market on March 27, 2024, the shilling was quoted at Sh166.54 against the Sterling Pound and Sh142.67 against the Euro.
In addition to its impressive performance against the dollar, the Kenyan shilling has also shown strength against regional currencies. Commercial banks quoted the shilling at Sh19.36 against the Tanzania Shilling and Sh29.47 against the Uganda Shilling. This further highlights the positive trend of the Kenyan currency, which has experienced a period of constant decline before its recent resurgence.
The recent strengthening of the shilling comes after a period of volatility and decline. In January 2024, the shilling hit its weakest point, exchanging at 160 against the dollar. However, the Central Bank of Kenya took measures to intervene and minimize the volatility. Since then, the shilling has steadily improved, reaching its strongest intra-day gain against the US dollar on February 14. This positive momentum can be attributed to increased investor confidence and significant inflows to pay off the US$2 billion Eurobond. Overall, the Kenyan shilling’s recent performance reflects a positive outlook for the country’s economy.