The Kenyan shilling edged down to a new record low on Thursday, as robust dollar demand across all sectors continued to outstrip lacklustre inflows, traders said.
At about 2pm, commercial banks quoted the shilling at 112.55/75 per dollar, from Tuesday’s closing rate of 112.45/65, which was the previous record low.
The shilling opened the year at 107.23. It has been losing ground against major world currencies despite concerted effort by the Central Bank of Kenya to ease the volatilities.
As at yesterday, the shilling had lost almost four per cent against the dollar and 2.7 per cent against the Sterling Pound. The dip in the shilling can also be attributed to prevailing global inflation.
Effect on Kenyan Shilling
In the U.S, inflation rate is at 5.4 per cent, an unprecedented level in the last 13 years. The U.K isn’t fairing any better, with the rate hovering around 4.2 per cent.
In Kenya, the rate, according to the Kenya National Bureau of Statistics has been fluctuating between 5.8 per cent and 6.45 per cent. The prices of common household consumer goods notably bread, sugar and cooking oil have increased.