This archive report was first published on 30 July 2019.
On July 30, 2019, the Kenyan shilling hit a near five-year low against the dollar, driven by importer demand and excess liquidity in the money markets.
At 10:47 am local time, commercial banks quoted the shilling at Sh104.25/35 per dollar, a significant drop from the previous day's close of Sh104.05/15.
According to Refinitiv data, the last time the shilling traded at these levels was on October 2, 2015, when it touched 104.40/50.
A senior trader from a commercial bank attributed the weakening to liquidity-driven factors, although they noted that increased end-month dollar demand could also contribute to the decline.
Earlier, central bank governor Patrick Njoroge had dismissed market concerns about the impact of graft charges against the finance minister, attributing the currency's fall to seasonal demand for dollars and excess liquidity.
