Over the last 12 months, the Kenya Shilling has lost its grip against the US Dollar, shedding 13 percent of its value.
This is despite the inflation in the country having eased to 8 percent in May from 9.2 percent in April.
When Dr. Kamau Thugge took over the helm of the Central Bank of Kenya (CBK) on June 19, 2023, the shilling breached the 140 mark – on June 20, 2023.
A week later, the shilling has remained relatively stable against the dollar, currently exchanging at Ksh.140.43 per US dollar as of June 27.
Despite its steady ground, it continues to pile pressure on the cost of living with the commodity prices expected to go up since the country is a net importer.
In his first Monetary Policy Committee (MPC) meeting Monday, Dr. Thugge said the country has enough forex reserves at Ksh.1 trillion to sustain the country with at least 4 months of import cover.
Liquidity in the money market
Liquidity in the money market remained adequate, supported by government payments.
Commercial banks’ excess reserves stood at Ksh.92 billion in relation to the 4.25 percent cash reserves requirement (CRR).
