This archive report was first published on 24 June 2020.
As of June 24th, 2020, the Kenyan Shilling has continued to hold firm, thanks to a steady influx of dollars from horticulture exports and diaspora remittances.
The Central Bank of Kenya (CBK) has reported a mean exchange rate of KSh 106.2694 for buying and KSh 106.4694 for selling against the US Dollar.
According to Felix Ochieng, a dealer at Faida Investment Bank, "The Shilling might remain relatively stable in the long term. With the IMF standby facility in place, the Shilling could weather the storm."
Commercial banks have quoted the local unit at 106.30 for buying and 106.50 for selling against the US dollar, a slight decrease from Monday's close of KSh 106.35 and KSh 106.55.
As the country awaits the Central Bank of Kenya Monetary Policy Committee meeting on June 25th, 2020, the Kenya Shilling has been exchanging within narrow ranges.
Notably, diaspora remittances have emerged as Kenya's leading source of foreign exchange, surpassing tourism and agricultural exports such as tea, coffee, and horticulture.
According to data from the CBK, total diaspora remittances for the first four months of 2020 were US$ 259,392.71 in January, US$ 218,991.93 in February, US$ 228,810.78 in March, and US$208,217.73 in April.
Additionally, the International Monetary Fund (IMF) has approved a $739 million disbursement to Kenya to address COVID-19 related disruptions, including cushioning the Kenyan shilling from economic shocks.
