On Monday October 16, the Kenya Shilling officially hit an all-time low of 149 against the US dollar. About one week later, the shilling has shocked many by touching another record low of 150 against the US dollar.
Data from the Central Bank of Kenya showed that the Shilling on October 23 crossed the 150 mark withing the day’s trading.
In the market though, the commercial banks are exchanging the shilling and the dollar at rates of between 155 to 157, suggesting that the exchange rate is soon going to hit 160. They are buying at a range of Sh. 141 and Sh. 149.95.
Forex bureaus on the other hand are selling the dollar at between Sh. 156.50 and Sh. 157 while buying at between Sh. 152 and Sh. 153.
The shocking thing has been the blatant ignorance the government has show the alarming fall of the local currency. The president no longer talks about the depreciating Shilling and neither does the National Treasury, leaving Kenyans wondering what is going on and who will save the shilling!
Incidentally, less than a month ago on September 19, 2023, the Shilling was officially trading at Sh. 147 against the US dollar. Barely a week earlier on the week of September 11, the Shilling was trading at 146. The Shilling has been losing by at least one Shilling every week.
This has marked a fresh low for a currency that has suffered the hardest hit in Kenya’s recent history in the one year rule of President William Ruto.
On September 14, 2022, a day after the swearing in of President William Ruto, the shilling was officially trading at 120 against the US dollar.
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Six months later, the shilling officially traded at 130 against the US dollar, and up to Sh. 147 in the black market! It the deteriorated past Sh. 140 and is now inching closer to Sh. 150 against the US dollar.
The status of the Shilling has gotten so bad that neither the president nor his government’s officials discuss the depreciation any longer.
Earlier in the April 2023, the president had made promises that he was going to bring the shilling back to the 115 to 120 level against the US dollar. At the time, the Shilling was trading at 134 to the Dollar.
“Today as a country we can buy fuel in Kenyan shillings, something that many people never thought would be possible. From this month of April, all our fuel marketers will be able to buy our fuel products in Kenya shillings and it will reduce pressure on our dollars,” Ruto had said.
He had gone on to say: “In fact in the next one month or so you will see the dollar exchange rate coming down in a very phenomenal way. In fact in my estimation, in the next couple of months, the exchange rate will come below Sh.120, maybe Sh.115.”
Alarmingly, the shilling had also lost value against regional currencies with the Ugandan currency gaining by as much as ten shillings against the Kenya shilling and the Tanzania shilling by around two shillings.