NAIROBI, Kenya – The Kenyan shilling has experienced significant volatility against major currencies, a situation largely attributed to the disruption of trade and tourism activities due to recent protests.
According to the latest data from the Central Bank of Kenya (CBK), commercial banks closed the markets on Friday with the dollar trading at Sh131.574.
Just two weeks ago, the dollar was trading at Sh128, highlighting a sharp decline in the shilling’s value.
A month earlier, before the onset of the protests, the shilling showed relative stability, exchanging at Sh128.77 to the dollar.
However, this changed as the currency fell to Sh129.52 on June 27 and further to Sh130.46 by July 19.
Financial experts have pointed to the protests as a major factor contributing to the shilling’s weakening.
“The Kenya Shilling remained stable against major international and regional currencies during the week ending July 25. It exchanged at Sh132.22 per US dollar on July 25, compared to Sh129.99 per US dollar on July 18,” a CBK statement noted.
This is not the first instance of the shilling’s decline. In April, the shilling exchanged at Sh133.99 per dollar, and it was at its weakest in January, hitting Sh160 against the dollar.
More recently, CBK quoted the shilling at Sh139 on March 12, the first time it had reached such levels since June 2023.
The shilling’s depreciation extends beyond the US dollar. It is currently trading at 169.408 against the Sterling pound and 142.89 per the Euro.
In June, CBK quoted the shilling at 178.85 against the Sterling pound and 152.32 against the Euro.
