The Kenya Shilling kicked off the week with a 1% gain against the US Dollar, at 130.4 units.
The local currency has been on a continued winning streak against the greenback since February.
This follows Kenya’s successfull returned to the international market with a $2 billion bond auction.
Data from the Central Bank of Kenya (CBK) indicates the shilling retailed at 131.8 units at the close of last week on Friday – April 4, 2024.
It exchanged at Ksh.131.17 per US dollar on April 4 compared to Ksh.131.80 per US dollar on March 28.
The usable foreign exchange reserves remained adequate at USD 7,148 million (3.8 months of import cover) as of April 4.
Also Read: Shilling Gain Helps Ease Kenya’s Inflation to 2-year Low
This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months of import cover.
Kenya’s Stock Market Undervalued
Despite being the poorest performers in 2023, Kenyan stocks have experienced a remarkable turnaround, emerging as the top performers in 2024.
The Nairobi All-share stock index has surged by an impressive 49% when measured in dollars.
It has bounced back from a drastic 43% decline in 2023, reaching levels not seen since 2011.
Emily Fletcher, co-manager of the BlackRock Frontiers Investment Trust, attributes this resurgence to shifts in Kenya’s economic policy.
“With a stable political backdrop, improving macroeconomic outlook and a stock market trading on five times PE, perhaps it is time for investors to re-look at the market,” Fletcher was quoted by Bloomberg in an interview.
