Kenya currency resilient against downgrades, cenbank says

Kenya’s shilling remains resilient despite credit rating downgrades, with the currency up over 20% against the dollar this year. The government’s successful issuance of a new $1.5 billion Eurobond has bolstered investor confidence.

The Central Bank of Kenya is confident in the economy’s stability, noting more foreign exchange inflows than outflows. While there are no plans for another bond buyback this year, the government is exploring additional external financing options.

Inflation has dropped to 4.3% year on year, prompting a reduction in the Central Bank Rate to 12.75%. The economy is projected to maintain a growth rate of 5.5% in 2025, in line with this year’s performance.

Looking ahead, Kenya is in discussions with development partners for funding support and has yet to finalize its future engagements with the International Monetary Fund post-2021. Despite external challenges, the country’s economic outlook remains stable.

Source: Reuters