Shilling Gain Helps Ease Kenya’s Inflation to 2-year Low

Kenya’s inflation eased to a two-year low according to the latest data by the Kenya National Bureau of Statistics (KNBS).

The data shows inflation eased to 5.7% down from 6.3% in February.

According to KNBS, the drop in inflation is attributable to the Kenya Shilling’s gain against the US Dollar.

Official data by the Central Bank of Kenya (CBK) shows the shilling eased to 131.5 units against the US Dollar.

The Shilling has climbed 9.1% on a month-to-month basis against the dollar from 144.8 units in March 2024.

Kenya recorded increased costs in transportation (up 9.7%), housing and utilities (up 8.0%), and food and beverages (up 5.5%).

Also Read: Inflation in Kenya Eases to 6.3%

This is between March 2023 and March 2024.

The cost of these commodities fell in March after the Kenyan shilling posted gains against the dollar.

CBK and its peers in East Africa are adjusting interest rates to support their struggling economies as they face inflation, currency depreciation, and global supply issues.

In February 2024, the CBK raised its policy rate to 13% from 12.5%, the largest jump in 12 years.

The shilling is touted as the best-performing currency globally.

Kenya Shilling Up 2.1% Against Dollar to Open Week At 134
A bundle of Kenyan bank notes
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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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