Kenya Shilling Stable Against Dollar, Lifted By Diaspora Remittances

The Kenya shilling remains stable against the U.S. dollar, supported by a 19.2% rise in diaspora remittances to $423.2 million in November 2024, according to Central Bank of Kenya data.

These inflows have strengthened the current account and foreign exchange market, ensuring more financial stability. With foreign exchange reserves at $9 billion, covering 4.6 months of imports and meeting statutory requirements, confidence in the market remains strong and may attract foreign investment.

On Friday Kenya’s shilling gained slight ground against the dollar amid slow activity. Commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with Thursday’s close of 129.00/130.00, according to Reuters.

Today, the Kenya’s shilling was stable against the US dollar on Monday, data from the London Stock Exchange Group showed. At 0722 GMT commercial banks quoted the shilling at 128.85/129.85 per dollar, compared with Friday’s closing rate of 129.00/129.50.

According to the Central Bank of Kenya (CBK), diaspora remittances increased to $423.2 million (KSh 54.7 billion at the current exchange rate) in November, a jump of 19.2% compared to a similar period in 2023.

“Remittance inflows in November 2024 totalled USD 423.2 million (Ksh54.7 billion) compared to USD 355.0 million (Ksh45.9 billion) in November 2023, an increase of 19.2%. The cumulative inflows for the 12 months to November 2024 increased by 16.7% to USD 4,872 million compared to USD 4,175 million in a similar period in 2023,” the regulator revealed.

CBK explained that remittance inflows continue to support the current account and the foreign exchange market. The US remains Kenya’s largest source of remittances, accounting for 53.4% in November 2024. “The usable foreign exchange reserves remained adequate at USD 9,010 million (KSh 1.2 trillion) (4.6 months of import cover) as of December 19. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” said CBK.

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