The Kenya Bankers Association (KBA) has noted that the Kenya Shilling strengthened significantly against the U.S. dollar as at February 15, 2024.
In a press release undersigned by John Gachora-Chair Kenya Bankers Association & NCBA Group Managing Director, As market closed on Thursday evening, the dollar buying and selling rates printed at an average price of 145 KES/$ and 148KES/$, respectively, reflecting considerable gains from recent trading ranges.
Given that Kenya liberalized its capital account in the 1990s, the exchange rate is
expected to move in either direction to reflect the forces of supply and demand at any given time.
Thursday’s move is rightly attributable to growing confidence in Kenya’s macro-economic performance and outlook, including the recent floatation and successful pricing of a US $1.5 Eurobond and the successful issuance and sale of an 8.5-year Infrastructure Bond.
It is instructive to note that as significant players in the domestic market, the majority of our members participated quite strongly in the KES 70 Billion Infrastructure bond, and banks hold just about 50% of outstanding public debt stock.
Data from the Central Bank of Kenya confirms that the Infrastructure bond received total bids worth KES 288 billion, and CBK accepted KES 240.9 billion with KES 218 billion in competitive bids.
Expectedly, the infrastructure bond elicited considerable foreign investor appetite, leading to the shilling rally, especially on the back of the sovereign’s successful Eurobond issuance that beat back quite convincingly earlier difficult risk concerns.
“These developments are commendable, and as the KBA fraternity, we salute the
Government of Kenya and the Central Bank of Kenya for their economic stewardship through a tumultuous time in the country’s economic history,” stated Gachora.
The KBA chairperson also commended customers and local bank depositors for their confidence and commitment to invest in the local market.
He assured that, KBA will continue to engage with the Government, the Central Bank of Kenya, and all economic agents as we seek to foster an even more conducive business environment necessary to foster greater prosperity for our people.
Author: Pristone Mambili
A trained Journalist with passion for Radio and online Writing.