The Kenyan shilling maintained its stability against the dollar on March 5, 2019, with commercial banks quoting the currency at 100 per dollar, according to Reuters. This resilience contrasted with expectations that uncertainty surrounding Treasury Cabinet Secretary Henry Rotich's involvement in a Sh21 billion dam contract scandal would disrupt financial markets. Despite Rotich's appearance at the Directorate of Criminal Investigations (DCI) to address allegations of improper advance payments for the Arror and Kimwarer dam projects, the Nairobi Securities Exchange (NSE) saw a Sh181 million increase in paper wealth, bringing total capitalization to Sh2.301 trillion.
Rotich's interrogation coincided with growing concerns over Kenya's fiscal challenges, including Sh200 billion in maturing foreign currency loans. Treasury officials announced plans to issue a Sh250 billion Eurobond or secure syndicated loans to manage debt obligations. This includes settling $766 million in commercial loans to Standard Chartered Bank and a $750 million Eurobond due by June 2019.
Market analysts noted the shilling's stability was supported by horticultural exports and remittances, though risks persisted amid ongoing investigations into the dam contracts. The DCI's probe into the multi-billion-shilling scandal remains a focal point for both financial and political observers.
