Ugandan and Tanzanian Shillings are having a tough time against the Kenyan Shilling (KES). After posting its biggest single-day gain in more than 12 years in mid-February, the Kenya shilling continues to rally against the EAC currencies.
On Wednesday, the Kenyan shilling (KES) surged to a 10-month high level of 137.00 against the US dollar. The shilling has risen in value by 19.27% against the USD since the start of February.
Related: Investment Opportunities in Kenya
As of March 13, the Kenyan shilling surged to a new month-high exchange of 18.55 against the Tanzanian shilling. This is significantly higher compared to the rate of 15.41 posted on January 2024. In 2023, the shilling weakened against the Tanzanian shilling by 13.8 percent.
The Ugandan shilling has also been on a free-fall against the Kenyan shilling since mid-February. Today, the shilling exchanged at a new month high of 28.37 against the Ugandan shilling. Last year, the shilling had declined against UGX by 18 percent.
The shilling’s sharp recovery has been fueled by the successful $1.5 billion Eurobond used to fund the buyback of the 2014 $2 billion bond. The buyback calmed investors’ fears over the country’s ability to repay the debt.
Financial experts project that the shilling’s upward move will continue, with 135.00 being on the cards. The strengthening of the shilling is good for the country because it reduces the cost of goods imported from Uganda and Tanzania.
