The shilling on Monday plunged to an all-time low against the dollar, signalling inflation and higher cost of imported goods.
CBK data shows the shilling exchanged at an average of Kes 120.5971 against the dollar, setting up the country for more expensive imports, electricity and debt servicing distress.
The weakening of the shilling triggered fears of a fresh round of inflationary pressure.
The Central Bank of Kenya (CBK) will meet in two days to decide whether to hold or increase its benchmark lending rate in the face of high inflation and a weakened Shilling.
Consequently, Kenya’s statistics agency is on Friday expected to publish an update on inflation numbers, with the politically sensitive price pressures expected to continue amid a lingering global surge in food prices.
In July, CBK retained the base lending rate at 7.50 per cent, shrugging off mounting jitters over the economic fallout from the Russia-Ukraine war and the General Election in August.
This spared consumers any increases in the cost of loans after the banking regulator sent its signal to banks to hold interest rates steady.
