The Kenyan shilling has faced considerable volatility against major currencies, largely attributed to disruptions in trade and tourism activities resulting from recent protests.
According to the latest data from the Central Bank of Kenya (CBK), commercial banks closed trading on Friday with the dollar at an exchange rate of Sh131.574. This marks a significant increase from Sh128 just two weeks ago.
Prior to the onset of the protests a month ago, the shilling maintained stability, trading at 128.77 against the dollar. However, it began to weaken, dropping to 129.52 on June 27 and further declining to 130.46 by July 19.
Financial experts assert that the protests have played a pivotal role in the shilling’s depreciation.
“The Kenya Shilling showed relative stability against major international and regional currencies in the week ending July 25, trading at Sh132.22 per US dollar, compared to Sh129.99 per US dollar on July 18,” stated CBK.
This recent fluctuation is not unprecedented, as the dollar has previously fluctuated despite government interventions aimed at stabilizing it. For instance, in April, the shilling traded at 133.99 per dollar, while it hit its weakest point in January at Sh160 against the dollar.
CBK reported other exchange rates, indicating the shilling at Sh169.408 against the British pound and Sh142.89 per Euro. In contrast, in June of this year, the shilling was quoted at Sh178.85 against the British pound and Sh152.32 against the Euro.
