This archive report was first published on 23 July 2019.
On July 23, 2019, the Kenyan shilling experienced a decline in value following the arrest and charging of Finance Minister Henry Rotich and other senior government officials with corruption-related offenses. The charges stemmed from an investigation into the misuse of funds in two dam projects planned in western Kenya, overseen by Italian construction company CMC Di Ravenna.
According to commercial banks, the shilling was quoted at 103.65/85 per dollar on Tuesday, compared to 103.50/70 at Monday's close. This represents a 0.5 percent decline in the shilling's value since the charges against the minister were announced.
"The currency has lost due to market jitters about the arrest of the finance minister. It has created a power vacuum in Treasury albeit temporarily," said a senior currency trader from a Nairobi commercial bank.
Rotich pleaded not guilty to the corruption charges, which include conspiring to defraud the public. The case marks an unprecedented move against a sitting minister in a country notorious for graft.
