Kenya shilling will soon find its true value against major global currencies, especially the US dollar. NCBA Managing Director (MD) and CEO James Gachora speaking at a past event. NCBA Managing Director and CEO John Gachora argued that the shilling will record a fresh fall, but not to the previous low of KSh 160 per US dollar. What is the current value of Kenya shilling? Data from the Central Bank of Kenya (CBK) showed that the shilling traded at KSh 131.8 per US dollar as of Thursday, March 28. P According to Gachora, the true value of Kenya shilling lies between the current exchange rate and the historic low of KSh 160. “We do not know the true value but certainly, it is not where it was, I also do not think it’s where it is at the moment, it is somewhere in the middle,” said Gachora. Is Kenya shilling value in line with market trends? The Kenya Bankers Association chairman explained that the current exchange rate between the shilling and the US dollar is not in line with the market trends. Gachora noted that the inflow of foreign currency through the infrastructure bond has been the main cause for the changing value of the shilling, a fit many experts have held on to. “Kenya shilling gained some confidence from the Eurobond performance. This prompted expectations of the shilling growing stronger which has reduced the demand for dollars,” he said. He ruled out the fact that the increased supply of dollars is driving the shilling growth, warning of an imminent increase in demand that will push the shilling back to its value. “It’s not necessarily that we have seen more supply and this has driven the shilling. “I think the demand will come back because people will need to trade. Perhaps, what was bought and built up is what’s in use. Very soon they will come back for more, and we will see the shilling going back to its true value,” said Gachora, as reported by Business Daily. Appreciation came barely a week after the Central Bank of Kenya (CBK) strengthened its monetary policy, raising the interest rate to 13%. Market analysts noted that the continued inflow of foreign currency is the key factor propping up the shilling against the US dollar.
by Japhet Ruto Wycliffe Musalia
