MURANG’A, Kenya, Feb 15 – Deputy President Rigathi Gachagua has told Kenyans hoarding dollars to sell them as fast as possible so as not to go at a loss due to appreciation of the Kenyan shilling.
Speaking as he accompanied President William Ruto in a tour of Murang’a county Thursday, Gachagua pointed out that the head of states efforts to slow down its depreciation had born fruit.
“I told them when with the President, I see how he is planning the economy, go sell the dollars you’re hoarding at home but they didn’t listen,” he stated.
“The President has done the work, the shilling has strengthened and those with dollars are now rushing to banks to sell. Today, it hit 137.”
He stated that plans are underway to ensure the shilling is strengthened further against the dollar.
“The way the President has planned, sell your dollars today, tomorrow and the day after. If you don’t sell, you will make huge losses. The way the President has planned, the dollar will hit Sh100,” he said.
The Kenyan shilling has significantly strengthened against the American dollar amid an inflow of greenback from global lenders as well as the buyback of the Eurobond by the government.
A spot check by Capital Business shows that Equity Bank is buying one dollar for Sh135.8 and selling at Sh140.8.
Stanbic Bank is also buying a similar amount at Sh135 and selling it at Sh145.
Major forex bureaus in Nairobi also indicate that the local unit has improved against the USD.
Satellite Forex Bureau is buying one USD at Sh135 and selling at Sh147, with Sky Forex Bureau quoting the same amount at Sh120 (buying) and Sh148 (selling).
The dramatic appreciation of the Kenyan currency against the USD comes after the state got $1.5 billion to repay the previous Eurobond that matures on June 24, 2024.
The buyback of part of Europe has eased fears among investors, attracting investment into the country.
Likewise, the Board of the International Monetary Fund (IMF) has approved $942.2 million for Kenya under the Extended Fund Facility (EFF) as well as the Extended Credit Facility (ECF).
Immediately, Kenya accessed $624.5 million from the facility.
