Kenya’s shilling weakened slightly on Monday, and was expected to ease further due to slowing dollar inflows, especially from non-governmental organisations, traders said.
At 0655 GMT, the shilling traded at 129.35/65 per dollar, compared with Friday’s closing rate of 129.00/30.
The International Monetary Fund said on Monday they will discuss a new lending programme for Kenya, with both sides agreeing to abandon a ninth review of the current $3.6 billion loan.
The weakening of the shilling is expected to continue because of slowing dollar inflows which means that fewer US dollars are coming into the country.
This is especially because non-governmental organizations (NGOs), who are usually a source of foreign exchange, have decreased their financing or transactions.
According to the Central Bank of Kenya as of Monday, March 17 2025, the Kenya shilling traded against the US dollar at Ksh 129. 51.
Meanwhile, it was valued at Ksh 167. 40 against the British pound and Ksh 140.89 against the euro.
In relation to regional currencies, the shilling was worth Ksh 10.85 per Rwandan franc, Ksh 28.30 per Ugandan shilling, and Ksh 20.574 per Tanzanian shilling.
The Japanese yen traded at Ksh 87.23 per 100 yen, while the South African rand stood at Ksh 7.12.
The Central Bank of Kenya (CBK) Governor Kamau Thugge has in the past attributed the weakening of the Kenyan Shilling to several factors.
One key factor is the increased demand for dollars, especially for imports like oil, which has led to the depreciation of the Shilling.
Another cause for the shilling decline is the issue of foreign exchange inflows where the balance of payments plays a crucial role. When there are fewer foreign exchange inflows, the Shilling tends to weaken
The performance of the Shilling is largely market-determined, with the CBK intervening only when necessary to manage excessive volatility
The CBK governor also attributed Factors such as diaspora remittances, tea exports, and tourism have also affected the stability of the Shilling.
The CBK governor also highlighted the role of factors such as diaspora remittances, tea exports, and tourism in influencing the stability of the Shilling.
