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The Kenyan shilling’s official exchange rate hit a new low of Sh160.23 to the dollar, extending its record decline against the US currency on the back of pressure from importer demand and efforts by the Central Bank to report the true trading value of the local unit.
Economits are now predicting that the shilling could again lose half its value, as it did in 2023, and sink past 200.
This comes even as the EAC powerhouse is set to repay a $2 billion Eurobond loan in August. Foreign investors are worried that Kenya might default so they are selling Kenyan assets to get their money out of the country.
As a result, the shilling has shed 2.4 percent against the dollar in the first two weeks of 2024, jumping from Sh156.40 to the dollar to Sh160.23.