Shilling Strengthens Against Dollar as Central Bank Holds Rates

The Kenyan shilling recorded its strongest performance in eighteen months this week, trading at levels last seen in early 2024 against the US dollar.

Analysts attribute the rally to record diaspora remittances, a narrowing current account deficit and the Central Bank's decision to hold the benchmark lending rate steady.

"We are seeing genuine confidence return to the market," said a Nairobi-based economist. "The question now is whether this is sustainable through the next import cycle."

Importers have welcomed the relief, while exporters have expressed caution about competitiveness.