This shift marked the end of a recent free fall, particularly in December 2023, when the shilling fell by 21%.
This will benefit importers who can now spend less on
imports.
The
appreciation of the local currency was attributed to the increase in
tourism and diaspora remittances.
Kenya's tourism industry is on the verge of achieving a significant milestone, as it is anticipated to experience growth in 2024.
In 2023, the sector generated Ksh333
billion (2 billion dollars) and it is projected to increase further this year.
Similarly,
Kenyans in the diaspora have increased their remittance with most of them now
sending more money back home.
President
William Ruto’s administration has been relying on Kenyans working
abroad as a strategy to stabilize the shilling.
The
government has thus been sending more casual laborers to work in different
countries across the world.
It was
reported that the stability of the shilling has contributed to an increase in
export earnings.
In
mid-January this year, the shilling dropped to an all-time low after
crossing the 160-unit mark against the dollar.
Rising
external debt service obligations, coupled with an increase in import bills,
have led to the depreciation of the shilling.
Former
Prime Minister Raila Odinga was banking on the weakening of the shilling to
make his case ad de-campaign Ruto in 2027, but as it looks, he may be forced to
go back to the drawing board.
The Kenyan DAILY POST
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