Kenyan Shilling Maintains Stability Against US Dollar Amid Steady Inflows
The Kenyan shilling has remained stable against the US dollar in recent trading, quoted around 129.00/50 on May 12 and 129.10/60 on March 26. Analysts credit this stability to strong forex inflows from diaspora remittances and tea exports, which have balanced import demand.
The Kenyan shilling has demonstrated notable resilience in recent trading sessions, maintaining a relatively flat trajectory against the US dollar with minimal volatility, largely attributed to subdued market activity and consistent foreign exchange inflows. Forex traders reported that on May 12, the shilling was quoted at approximately 129.00/50 per dollar in early trade, virtually unchanged from its previous closing position, indicating a period of calm in the currency markets.
This stability was also evident earlier in the year. For instance, on March 26, the shilling was quoted at 129.10/60 against the dollar. Market analysts attribute this sustained stability primarily to robust foreign exchange inflows originating from diaspora remittances – money sent home by Kenyans working abroad – and proceeds from the country's significant tea exports. These consistent inflows have been crucial in meeting the demand for US dollars from importers, thereby preventing significant downward pressure on the shilling. The currency's steadiness is a positive sign for businesses, as it reduces uncertainty in international trade transactions and helps manage import costs.