This archive report was first published on 11 December 2019.
As of December 11, 2019, the Kenyan shilling has held steady against the US dollar over the past one week due to a combination of an easing in the monetary policy stance and increased forex inflows.
Analysts attribute this stability to the Central Bank of Kenya's measures on critical macro-economic variables, credit control, and the repeal of the rates cap law, which have boosted the local unit.
Commercial banks quoted the shilling at 101.50/70 per dollar, the same as Tuesday's close.
At the end of the last week, the Kenya Shilling appreciated by 1.0 per cent against the US Dollar to close at KSh 101.8, from KSh 102.8 recorded the previous week.
Dealers attribute this strengthening of the local unit to forex inflows from offshore investors buying government debt amid tight local currency liquidity conditions.
On a year-to-date basis, the Shilling has appreciated by 0.1 per cent against the US dollar, in comparison to the 1.3 per cent appreciation in 2018.
Analysts maintain that the Shilling should remain relatively stable against the greenback over the next three to six months.
