Coronavirus drags Kenyan Shilling to yearly lows

NAIROBI, Kenya, Mar 20 – The coronavirus pandemic has dragged the Kenyan shilling to yearly lows to sell at 106.60 against the US dollar, compared to 103.00 a week ago.

Analysts at NCBA bank say the drastic change follows a surge in demand for the safe-haven US dollar, which is considered much more stable globally, compared to the local unit.

The hit was so bad, that even the conventional currency flows from incoming tax payment could not salvage the shilling’s depreciation.

The fall of the shilling began on Thursday when it traded 104.90 against 105.20, its lowest level since September 2015.

It ceded further ground against the greenback in Friday’s early trading, with analysts attributing it to panic-dollar buying due to the coronavirus pandemic.

“We expect trading to remain rather volatile ahead of the weekend, with direction of the US-KES pair remaining at the mercy of the broader market sentiments,” an NCBA analyst told Capital Business.