The Kenyan Shilling, which ranked among the least performing African currencies in 2023, has demonstrated a noteworthy turnaround by registering a 0.73 percent improvement against the US dollar.
This positive shift, from KES161.36 to KES160.19, holds significance as the currency has not witnessed such gains in over three years, marking a notable deviation from its customary trend of depreciation.
Having consistently declined for several months, the Kenyan Shilling diverged from its downward trajectory, displaying a contrary movement by gaining almost 1% against the dollar.
Official data from the Central Bank of Kenya reveals that similar gains were observed during the COVID-19 pandemic. During that period, the local currency strengthened to KES 109.44 against the dollar, up from KES 111.04 on December 22.
For the twelve months concluding in December 2023, the Kenyan currency experienced a depreciation exceeding 26%, surpassing its previous year’s rate of 8.3% by more than threefold.
In the preceding week, the Kenyan currency reached a new low at KES160.23 per dollar, attributed to increased demand for the dollar from the energy and manufacturing sectors. Currency traders in the nation reported significant pressure on the Kenyan Shilling over the previous two weeks.
Contrary to this trend, in the initial two weeks of the new year, the country’s currency depreciated by 2.4% against the US dollar, transitioning from KES156.40 to KES160.23. This starkly contrasts with the recent revelation of Kenya’s 0.73% gain against the dollar.
