RUTO might be propping the shilling like UHURU – NCBA Bank CEO JOHN GACHORA says.

Friday, March 29, 2024 - NCBA Group Managing Director and Kenya Bankers Association chairman John Gachora has said President William Ruto’s government might be propping the Kenyan shilling like the former Jubilee regime.

In an interview with one of the local business dailies, Gachora said economic fundamentals don’t explain why the Kenya shilling is stabilizing against the dollar.

“It’s hard to say because the fundamentals are not explaining the performance of the shilling. 

"Obviously, there is a good explanation in that we got quite a significant amount of dollars coming from the infrastructure bond. 

"The performance of the Eurobond also created some confidence. 

"That can only go so far, however. Because of the expectation that the shilling will get stronger, the demand for dollars has gone down significantly, it’s not necessarily that we have seen more supply and this has driven the shilling,” Gachora said.

“I think the demand will come back because people will need to trade. 

"Perhaps, what was bought and built up is what’s in use. 

"Very soon they will come back for more and we will see the shilling going back to its true value. 

"We don’t know the true value but certainly it’s not where it was, I also don’t think it’s where it is at the moment, it's somewhere in the middle,” Gachora added.

On Thursday, the shilling was trading at 131.00/132.00 to the greenback, slightly firmer than its Wednesday’s close of 131.50/132.50.

The Kenyan DAILY POST

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