The Kenyan Shilling has been rated as the best-performing currency in Africa by Business Insider, following an impressive 15-month growth streak. According to the New York City-based multinational financial and business website, the Shilling has climbed to historic levels not seen in over a year, currently trading at Ksh128 against the US Dollar.
“The Kenyan Shilling has recently risen to levels not seen in over a year. The currency rose to a 15-month high against the US Dollar. The last time the currency was this strong was in March 2023. From Ksh161/$ to now Ksh128.66/$, the Kenyan Shilling remains one of the best-performing currencies on the continent,” reported Business Insider.
This recognition follows a similar rating by the World Bank in April this year, highlighting the shilling’s robust performance. The currency’s upward trajectory began in February 2024 after the successful floating of a $2 billion Eurobond, which was oversubscribed by investors. The oversubscription significantly boosted investor confidence, contributing to the shilling’s growth.
Several factors have driven the 15-month growth spike of the Kenyan Shilling. Increased foreign exchange inflows from tea and coffee exports have played a crucial role, alongside a notable rise in diaspora remittances. In January 2024, remittances reached a high of Ksh53.8 billion (USD 412.4M), with this growth trend continuing in recent months.
Despite the recent strong performance, Central Bank Governor Kamau Thugge, during a Monetary Policy Committee meeting in June, projected that the shilling would remain steady without significant fluctuations. “We don’t see significant weakening or significant strengthening; there should now be stability in the exchange rates,” Thugge reiterated.