US investors respond on Kenya’s weakening shilling (Ksh)
US investors (Citigroup Inc. a New York-based global investment bank) say Kenya could draw greater foreign investments despite the weakening shilling (Ksh)
US investors (Citigroup Inc. a New York-based global investment bank) say Kenya could draw greater foreign investments despite the weakening shilling (Ksh).
Citigroup Inc. a New York-based global investment bank on Monday noted that the downward spiral of the Shilling would not scare away investors.
Foreign investors were not particularly concerned about the weak shilling, according to the institution that oversees more than 200 million accounts for clients and investors in more than 160 countries.
In an interview with Bloomberg, Citi’s head of markets for Sub-Saharan Africa, George Asante, outlined how Kenya may still attract more foreign investment despite the shilling’s record low rate of exchange against the dollar and other major currencies.
“Countries where we’ve seen significant FX adjustments are clear winners from an investment perspective,” Asante noted adding Angola and Nigeria among the countries to benefit after their currency’s decline.
“All these from a local market perspective offer opportunities.”
Asante’s statement was made two days before the shilling hit an all-time low of 145.261 against the US dollar.
The shilling decline was attributed to manufacturers and energy traders scrambling for dollars creating scarcity.
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Nigeria, Angola, and Kenya’s currencies have been the worst hit in 2023 according to Bloomberg estimates.
The Nigeria naira has lost 40 percent of its value against the dollar while over the same period, Angola’s kwanza registered a 39 percent depreciation.
Kenya on the other hand has lost 15 percent of its value against the dollar over the same period of time.
In April of this year, President William Ruto gave Kenyans the assurance that his administration had taken steps to relieve the pressure on the sinking shilling.
However, on August 27, David Ndii, the head of the Presidential Council of Economic Advisors, revealed that his team had warned Ruto of making such pronouncements in the future.
“The exchange rate is not a policy target. It will settle where the market clears, that is, demand equals supply,” Ndii told Kenyans worried about the weak shilling.
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