The Kenya Shilling exchange rate against the US Dollar depreciated 0.14% on Wednesday to 108.55 from KSh 108.40 in the previous trading session.
The local unit is expected to trade at 108.51 by the end of this quarter, according to Trading Economics global macro models and analysts expectations.
“Looking forward, we estimate it to trade at 109.29 in 12 months,” said Trading Economics, a New York-based online platform that provides historical data, economic forecasts, news, and trading recommendations.
On Tuesday, 18th August 2020,the Kenyan Shilling touched a new record low of 108.6 against the US Dollar.
This is as Safaricom, the most capitalized firm at the Nairobi Securities Exchange(NSE), dumps the local currency and turn to the greenback ahead of its record final dividend payout at the end of the month.
The firm is expected to make dividend payments worth more than KSh 56 billion to shareholders, the most substantial bulk going to foreign equity owners of the firm who will be paid in hard currency.
At the same time, demand for dollars from importers also increased as many businesses returned to activity following weeks of closure due to lockdown measures imposed to curb the pandemic.
A decision by the government to lift a five-month ban on imports of second-hand clothes and shoes on August 14th has also hit the currency.
The Kenya Shilling has been weakening since July 6th as the country gradually lifted restrictions and has depreciated 5.4% so far this year.
The Central Bank of Kenya (CBK) indicate rates for the Kenya Shilling is a mean of 108.55, buying 108.4588 and selling at 108.6588.
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