Sharp Daily
No Result
View All Result
Thursday, June 5, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Kenya Shilling Expected to Hit the 150 Mark Against the Dollar by June Next Year

Patricia Mutua by Patricia Mutua
June 22, 2023
in News
Reading Time: 2 mins read
Kenyan currency

Kenyan currency [photo/Courtesy]

The government has projected the Kenyan shilling to weaken further against the dollar to hit the 150 mark by the maturity of the USD 2.0 billion Eurobond in June next year, which has put pressure on the country’s exchange rate. The Treasury has indicated that the government will pay a total of Ksh 301.51 billion with the projected 150.76 exchange rate in June 2024. This is higher than the Ksh 241.75 billion that the Treasury had put aside as redemption of the debut Eurobond at an exchange rate of Ksh 120.87 in March earlier this year.

Read more: Heavy Gov’t Borrowing Continues To Depreciate Kenyan Shilling

According to the Central Bank of Kenya, the Kenya Shilling is trading at 140.3 and has been hitting record lows every day, having shed 13.7% of its value since the start of the year as the country continues to experience a dollar shortage aggravated by hikes in interest rates by central banks in advanced economies. However, Kenya expects more inflows from the IMF in July in addition to the World Bank’s Ksh 140.2 billion in support of fiscal consolidation, which is aimed at reducing spending and increasing revenues and is bound to increase the foreign exchange reserves from the current Ksh 1.05 billion.

This is amidst the cost of servicing. Kenya’s rising debt surpasses spending on recurrent expenditure for the national government, which in part reflects the President’s pledge to prioritize obligations to creditors over payments like salaries, which saw a delay in civil servants’ salaries for the first time in March 2024.

RELATEDPOSTS

No Content Available

Read more: Kenya Shilling to Continue Depreciating- Absa Bank Report

Out of the Ksh 1.74 trillion in tax receipts for the period July 2022 to May 2023, the treasury spent nearly Ksh 1.02 trillion, equivalent to 58.6%, on debt repayments, exceeding the day-to-day running of the government by Ksh 44.7 billion, which has impeded spending on development projects, which only had an allocation of 10.9%, translating to 0.19 trillion of the tax receipts in the said period. This has limited the government’s ability to create jobs through new projects and the development of new infrastructure.

The IMF and World Bank have classified Kenya as at high risk of debt distress since 2020 due to a consistently large deficit in annual budgets that is met through borrowing. The impending maturity of the USD 2.0 billion Eurobond has caused jitters among international investors over Kenya’s ability to repay external debts, as the newly elected CBK Governor vows to work closely with the Treasury to ensure timely payment of the sovereign bond.

Read more: Kenya’s Credit Outlook Downgraded Amid Tight Liquidity Position

Previous Post

Kenya’s Senate and Council of Governors Call for a Devolution Bond

Next Post

Kenyan Government Plans to Borrow More Domestically

Patricia Mutua

Patricia Mutua

Related Posts

News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025
News

Leadership challenges at the University of Nairobi

April 24, 2025
News

Easter eggs and earnings: Growing your nest egg with CMMF

April 16, 2025
News

Geoffrey Ruku declares KES 377M net worth during CS vetting

April 15, 2025

LATEST STORIES

How Kenyan banks can modernize without marginalizing

June 4, 2025

Human rights concerns over activists’ treatment in Tanzania

June 4, 2025

Decoding stock-based compensation

June 4, 2025

Comparative advantage is the secret to real economic take off

June 4, 2025

Understanding inflation and its impact on everyday life

June 4, 2025

Economic reforms are costly

June 3, 2025

Cytonn Income Drawdown Fund (CIDDF)

June 3, 2025

Navigating the money market and fixed income funds landscape

June 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024