Kenya’s shilling is regaining value, but don’t expect it to last – expert
SHORTLY after Kenya’s 2022 elections, the shilling depreciated rapidly against the US dollar – the country’s main currency for international transactions – fuelling a wave of political discontent. More than a year later, the Central Bank of Kenya, taking its cue from the International Monetary Fund, said that the run on the shilling was a market correction for a currency that had been overvalued by between 20% and 25%. By early this year, the shilling recovered. Finance scholar Odongo Kodongo answers our questions about Kenya’s exchange rate fluctuations. How is the shilling’s exchange rates determined? Kenya operates a floating exchange…
