Is it normal for the Kenyan Shilling to sit at 129 against the Dollar for so long? — A closer look.
It almost feels impossible: a currency that just over a year ago was crashing past KSh 160 per dollar now stabilizes strongly at around KSh 129, barely moving for nearly two years. For most Kenyans, this stability feels strange, given what the country has end ured: global inflation, geopolitical turmoil, Middle East trade disruptions, and domestic political protests. Yet the shilling has barely fluctuated. In early 2024, Kenya was staring at one of its weakest currency moments ever. The shilling traded at KSh 162–164, foreign debt stress peaked, and a looming Eurobond maturity triggered fears of default. The government and the Central Bank of Kenya (CBK) responded aggressively: a $1.5B Eurobond buyback, continued support under the IMF’s Extended Credit Facility, and a push to rebuild foreign-exchange reserves. Tighter fiscal and monetary policy also helped restore confidence, allowing the shilling to climb back into the 130s and eventually settle around 129, where...