The depreciation of the Kenya Shilling against the US dollar has continued unabated among commercial banks and forex bureaus.

The shilling is now closer to hitting 170 against the US dollar in bureaus and commercial banks even as the official rate classes the shilling at around 160.6 per dollar.

This is despite figures from the Central Bank of Kenya which by Friday 26, January had the Kenya shilling trading at 160.6186 against the US dollar.

On the same day, forex bureaus – which traditionally have better rates than commercial banks were buying the US dollar at between 163 and 164 and selling at between 166.5 and 167.5.

The official CBK rates are usually based on interbank rates which are similar to wholesale prices. They are different from the retail rates a buyer gets from the commercial banks and forex bureaus.

Kenya Shilling now Africa’s second worst performing currency

On Monday January 29, the CBK quoted the shilling as trading at 160.6972 against the US dollar. Among bureaus, Satellite Forex Bureau was selling the dollar at 166 and buying at 163.

The depreciation of the shilling commercially comes amidst expert predictions that the shilling might hit lows of 210 in the year 2024.

For instance, according to financial markets analysts who spoke with Bloomberg, the mildest the shilling can officially get to this year is 171.

“The worst-case scenario among five analysts and traders polled by Bloomberg is for the shilling to depreciate to as low as 210 against the US currency by the end of the year, with the mildest forecast at 171,” the Bloomberg reported.