Deputy President (DP) Rigathi Gachagua has spilt the beans on why the Kenyan shilling is on a freefall against the United States (US) dollar.
Deputy President Rigathi Gachagua claimed some unnamed government officials stole money from the Central Bank of Kenya.
Gachagua said the Kenya Kwanza Alliance administration was determined to fix the economy but warned it would take time.
The Kenyan shilling has lost over 20% of its value against the US dollar since the beginning of the year and is in freefall.
Rigathi Gachagua accused Uhuru Kenyatta’s gov’t of mismanaging the economy.
On Tuesday, November 21, the Central Bank of Kenya (CBK) quoted the shilling at 152.44 against the dollar.
DCI Admits Saga Involving USD 439 Trillion Puzzled Detectives: “Hesabu Ilikuja na Waholanzi” During the ICPAK seminar in Mombasa, the DP claimed that $2 billion (KSh 305.2 billion) was withdrawn from the CBK and deposited in a private bank during the previous regime.
“We will tell the story of how $2 billion dollars was taken from the Central Bank and put into a private bank that is responsible for the weakening of the Kenyan shilling.People will be shocked,” he alleged.
Why Rigathi Gachagua warned of tough times Gachagua said the Kenya Kwanza Alliance administration was determined to fix the economy.
However, he warned that it would take time since the Jubilee regime “went on a borrowing spree, accumulated debt, and stole public funds”.
“The people of Kenya should know why we are in this mess. How do people expect the government to fix a 10-year mess in one year?” Gachagua posed.
What Kenyan economist predicted about shilling FX Pesa lead market analyst Rufas Kamau projected that the shilling will continue weakening against the dollar.
Kamau cited high US interest rates and costly petroleum products.
“It is anticipated that the exchange rate may reach 160.45 by the end of the year.
However, the Kenyan shilling faces significant challenges in the form of surging crude oil prices and the strengthening US dollar.
It is expected that investors will shift their focus away from Kenyan bonds in pursuit of higher yields in currencies that are not experiencing rapid depreciation.
Consequently, I project that the Kenyan shilling is likely to reach a level of 200 against the US dollar by the end of the year,” Kamau said.
