Kenyan Shilling Edges Higher Against US Dollar, Boosted by Strong Remittance Inflows

Nairobi, Kenya – The Kenyan shilling exhibited resilience in the forex market on May 30, trading slightly higher against the US dollar. Commercial banks in Nairobi quoted indicative rates around 128.80/129.30, marking a modest appreciation from the previous day's approximate levels of 129.00/129.50. Foreign exchange dealers attributed this firming of the local currency primarily to a consistent inflow of foreign currency from diaspora remittance channels.

Market Dynamics

These remittance inflows have reportedly helped to offset substantial demand for dollars from importers, particularly those in the manufacturing sector requiring foreign currency for raw material procurement. Market participants observed that diaspora remittances, alongside some foreign portfolio inflows, have provided crucial support to the shilling in recent trading sessions. “There’s some dollar demand for manufacturers importing raw materials, but remittances continue to be a stabilizing factor,” one forex dealer commented, reflecting the prevailing market sentiment. The Central Bank of Kenya is expected to continue closely monitoring these foreign exchange flows as part of its ongoing market operations aimed at maintaining currency stability.