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Kenya shilling continues to lose value as Tanzania, Uganda rise

The shilling hit a record low earlier this month, trading at Sh112.83.
[FILE] Central Bank of Kenya (CBK) governor Patrick Njoroge displays some of the new designs for the Kenyan currency notes in 2019.
[FILE] Central Bank of Kenya (CBK) governor Patrick Njoroge displays some of the new designs for the Kenyan currency notes in 2019.

Undermined by United States dollar demand from general goods importers and oil companies, the Kenyan currency has continued to lose value.

According to data from Bloomberg, the Kenya shilling was ranked 11th among top African currencies depreciating at -2.93 percent.

In East Africa in particular, Uganda and Tanzania currencies are the best performing media of exchange, whereas Kenyan and Rwandan currencies continue to lose value against the dollar.

The Kenya shilling dropped to a historic low on December 1 where it traded at Sh112.83 against the dollar.

The shilling, which opened the year at Sh107.23, has been losing ground against major world currencies despite numerous support by the Central Bank of Kenya (CBK) to iron out volatility.

Analysts say the shilling, just like other currencies, is feeling the heat of global inflation, with economies like the US and UK experiencing the worst cost of living in almost two decades.

The news comes less than a week after President Uhuru Kenyatta in his state of the nation address said Kenya was ranked as the 6th wealthiest African nation.

This he attributed to the fact that the GDP recorded a 10.1% growth during the second quarter of 2021; the highest growth ever recorded in one quarter in Kenya’s history and also the first time Kenya has hit a double-digit growth number.

CBK documents show that the financial regulator has been in the market for the past five months in a bid to stabilise the shilling. But this has had very little effect.

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