The Kenyan shilling has remained in a free fall as it crosses a new confidence marker to trade past Ksh.111 mark against the US dollar.
The local unit was quoted at Ksh.111.13 ahead of Thursday’s trading close in contrast to Ksh.110.67 on Wednesday evening.
The shilling’s weakening continues to be tied to increased demand for dollars following the ease of COVID-19 restrictions along with weaker foreign currency receipts from the pandemic hit on exports and foreign direct investments.
Since the beginning of the year, the local unit has already shed 9.7 per cent of its value against the green buck even as it sees a greater weakening in other leading world currencies such as the Euro and the British Pound.
At the start of the year, the shilling hovered around the Ksh.102 mark against the dollar while it traded at Ksh.113.56 against the Euro in contrast to Ksh.133.24 on Thursday.
Even with the significant weakening, questions have emerged over the true value of the local unit as banking sector analysts warn of the appearance of cracks in the foreign currency interbank market
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