Kenyans feel the pinch as banks hike the exchange rate to KSh 150 Per US Dollar
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Ksh losses its value trading against the US dollar as commercial banks hike the exchange rate to KSh 150 Per US Dollar
Ksh losses its value trading against the US dollar as commercial banks hike the exchange rate to KSh 150 Per US Dollar.
Kenyans’ demand for the dollar has more than doubled even as the shilling continues to lose value against the US currency.
Consumers now pay a high price for imported items since the value of the Kenyan shilling has fallen by nearly half in less than 50 months of trading against the US dollar.
The Central Bank of Kenya (CBK) average exchange rate stood at KSh 142.78 per dollar as of Thursday, August 3.
However, most commercial banks increased the rate of selling the dollar to a maximum of KSh 150 as the shortage of the currency increased.
According to a publication by Business Daily several commercial banks are already selling US dollars above the Sh150 mark in Nairobi, piling pressure on the Kenyan shilling while setting up consumers for a new wave of currency-driven price increases across imported products.
The Forex bureaus are currently selling dollars at an average of Sh145.
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Meanwhile, Kenya’s official foreign exchange reserves recently received a major boost from development partners, including the International Monetary Fund (IMF) which disbursed Sh58.6 billion ($141 million) last month.
Importers have been forced to cut their purchases even as consumers cough up more for items such as cars and electronics.
According to Treasury’s projection, the shilling (Ksh) could weaken further to 150.76 units against the dollar.
The Kenyan shilling lost 14% of its value against the United States (US) dollar during the first half of the fiscal year.
According to the FX Pesa Market Outlook report, foreign investors were the worst hit by the depreciating shilling as they lost in dollar terms.
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