The Kenyan shilling has depreciated to KSh 130 against the US dollar, marking its weakest level since August 2024 amid rising demand for foreign currency.
Data from the interbank market shows the shilling traded at around KSh 130.0 per dollar, slipping from previous levels as pressure mounted from increased demand by importers.
This comes against the backdrop of global economic tensions linked to the ongoing Middle East conflict.
Analysts note that the surge in dollar demand is largely driven by businesses seeking to hedge against potential price increases in imported goods, particularly as global markets remain volatile.
Despite the pressure, the Central Bank of Kenya (CBK) has intervened by supplying dollars from its foreign exchange reserves, which currently stand at near-record levels of about $14 billion (KSh 1.82 trillion).
This move is aimed at stabilizing the currency and cushioning the market from extreme fluctuations.
Traders, however, warn that the shilling could face further weakening if global uncertainties persist, especially if the Middle East crisis continues to disrupt international trade and financial markets
