Connect with us

Hi, what are you looking for?


Shilling loses ground, again

NAIROBI, September 24 – The Kenya shilling on Wednesday traded in sight of the Sh74 level that it experienced last week as the market saw demand for dollars from the energy sector.

Stephen Kimani of Co-operative Bank’s Treasury Department told Capital Business that other dollar buyers were also offloading the shilling to raise money for their end-of-month obligations, in the absence of commensurate inflows.

The local currency breached a technical level of Sh73.50, Wednesday, creeping towards the Sh74 mark.

“A technical level is what has been considered by currency analysts as the next expected level of a currency pair while a psychological level is what the market naturally anticipates to be the next level of a pair,” Mr Kimani explained.

The shilling opened the day posted at Sh73.25 buying and Sh73.35 selling but lost Sh0.45 weighed down by an upsurge in end month corporate and inter-bank demand as the market continued to experience shortage of the American currency.

Dealers at Co-operative Bank said they expected the currency to remain bearish in the coming days with the Sh74 mark providing the next psychological level for the local unit.

The Sterling Pound closed the day at Sh136.75 against Sh136.95 while the Euro traded at Sh107.95 against Sh108.10. 100 Japanese Yen traded Sh69.30 against 69.50 and to the South African Rand the local currency bought at Sh9 against Sh9.10.

The Kenyan currency was trading USh22.50 buying and USh22.60 selling, while against the Tanzania currency, the shilling dealt at TSh15.90 against TSh16.

When the dollar-shilling exchange rate went above Sh74 last week, the Central Bank of Kenya (CBK) offloaded dollars in a bid to stabilise the market.

Advertisement. Scroll to continue reading.

The intervention was meant to reduce the shilling’s vulnerability in the absence of foreign currency inflows.  The local currency has been bearish and susceptible to the slightest movement in the demand and supply market environment. The traditional foreign exchange earners of agriculture and tourism have not been able to keep up with the local demand for the greenback.

Dealers also say the intervention could be CBK\’s strategy to ward off foreign exchange speculators who can initiate major price swings especially at this time when the local currency is unstable.

The financial regulator last week sold $19 million to the banks, over a two day period.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...