This archive report was first published on 10 September 2019.
September 10, 2019 - The Kenyan shilling has come under pressure in recent weeks, with the local currency trading at Sh103.8 against the US dollar as of yesterday's close of business.
This is despite analysts' hopes of a resurgence from last week's poor show, with the shilling trading at 103.85/104.05 against the greenback on Friday.
Analysts have cited increased liquidity and a decline in remittances from Kenyans living and working abroad as contributing factors to the shilling's decline.
Remittances from the diaspora have been critical in shoring up the shilling in the past year, but have begun to decline as the amnesty period given to Kenyans who had stashed money abroad without paying taxes came to an end.
According to data, the country received Sh22.4 billion from Kenyans in the diaspora in July, which was Sh7.4 billion less than what was received in June.
Foreign reserves have also declined by Sh17.3 billion in the last two weeks, with the Central Bank of Kenya (CBK) moving to shield the local unit from pressure through open market operations.
Some analysts have linked this to CBK's efforts to prevent further slide of the local currency.
