According to central bank data, Kenya’s currency fell to an all-time low of 150 shillings to the US dollar on Monday (Oct. 23, 2023), aggravating the country’s already precarious economic status in the severely indebted, inflation-ridden east African nation.
Over the past year, the Kenyan shilling has lost over 24% of its value in relation to the US dollar due to its rapid devaluation.
A dollar was trading for 150 shillings on Monday (Oct. 23, 2023), according to the Central Bank of Kenya. In recent weeks, several commercial banks and bureau de change have already reached this figure or even more.
The Central Bank of Kenya reports that the price of a dollar was 150 shillings on Monday (Oct. 23, 2023). In recent weeks, several commercial banks and bureau de change have already reached this level or much more.
This new low is mostly the result of the US currency gaining because of the ongoing Middle East turmoil “which is pushing investors towards safe havens” and the high yields on US Treasury bonds, according to Ken Gichinga, chief economist of research firm Mentoria Economics.
Due to this depreciation, import costs are rising and Kenya’s debt, which represents about two-thirds of the country’s GDP and exceeded 10,100 billion shillings (64.4 billion euros) at the end of June, according to Treasury estimates.
It is becoming more and more expensive for the government to repay this debt, especially to China, as it will also have to begin paying back its debt in July.
Ref: AFP
