Yesterday, the Kenya Shilling showcased remarkable strength against the US dollar, marking a significant rally in the foreign exchange market. The dollar buying and selling rates closed at an average of 145 KES/$ and 148KES/$ respectively, indicating substantial gains from previous trading sessions.
Attributing this surge, John Gachora, Chair of the Kenya Bankers Association (KBA) and NCBA Group Managing Director, pointed towards burgeoning confidence in Kenya’s macro-economic performance and future prospects. Gachora highlighted recent economic milestones, including the successful pricing of a $1.5 Eurobond and the issuance of an 8.5-year Infrastructure Bond.
“Our members participated strongly in the KES 70 Billion Infrastructure bond, and banks now hold approximately 50% of the outstanding public debt stock,” Gachora stated, underlining the pivotal role of domestic institutions in bolstering the country’s economic resilience.
Yesterday, Gachora refuted claims of Kenyans queuing in large numbers at banks to sell their dollars, labeling it as misinformation.
The Infrastructure bond, which attracted total bids worth KES 288 billion, received overwhelming interest from foreign investors, fueling the rally in the Kenyan currency.
Gachora emphasized that this surge in foreign investor appetite was particularly stimulated by the success of the sovereign’s Eurobond issuance, which effectively mitigated earlier risk concerns.
Expressing commendation for the Government of Kenya and the Central Bank of Kenya for their economic stewardship during challenging times, Gachora extended gratitude to local bank depositors and customers for their unwavering confidence in the domestic market.
“As the KBA fraternity, we remain committed to engaging with the government, the central bank, and all economic stakeholders to cultivate a more favorable business environment conducive to our nation’s prosperity,” Gachora affirmed in conclusion.
