The Kenyan shilling continued to hold steady against the US dollar on Friday, trading at 129.70 units against the greenback according to latest market data.
Trading figures published by investment platform Seeking Alpha showed the local currency registered a marginal 0.08 per cent movement during the day’s session, with the exchange rate fluctuating between 129.60 and 129.85.
The relative stability of the shilling comes after months of reduced volatility in the foreign exchange market, a sharp contrast to previous periods marked by depreciation pressures caused by rising import costs, dollar demand and external debt obligations.
Economists Jaafar Haji attribute the improved performance to increased diaspora remittances, stronger foreign exchange reserves and monetary policy measures implemented by the Central Bank of Kenya.
He said shilling’s performance remains critical to Kenya’s economy as it directly affects import costs, inflation, fuel prices and debt servicing.
“Market analysts say continued stability could help restore investor confidence and ease pressure on businesses that rely heavily on imported goods and raw materials.”
However, experts caution that global oil prices, external debt repayments and international market trends could still impact the currency’s performance in the coming months.
