The Kenyan shilling has continued to experience significant volatility against major currencies, largely due to disruptions in trade and tourism activities stemming from recent protests.
According to the latest data from the Central Bank of Kenya (CBK), commercial banks closed the market on Friday, exchanging the dollar at Sh131.574. Just two weeks ago, the dollar was trading at Sh128. Before the protests began, the shilling was relatively stable, exchanging at 128.77 to the dollar. However, it dropped to 129.52 on June 27 and further declined to 130.46 by July 19.
Financial experts have indicated that the protests have significantly contributed to the weakening of the shilling. “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,” stated the CBK.
This is not the first instance of the dollar experiencing fluctuations since the government introduced new measures to stabilize the currency. In April, the shilling was exchanged at 133.99 per dollar, and it reached its weakest point in January when it exchanged at Sh160 against the dollar. The CBK reported the shilling at Sh139 on March 12, marking its first significant drop since June 2023.
Additionally, the data shows the shilling is trading at 169.408 against the British pound and 142.89 against the euro. In June of this year, the CBK quoted the shilling at 178.85 against the British pound and 152.32 against the euro.
