Shilling drops to a two year low

The Kenyan shilling weakened to a two year low to the dollar on Thursday following the sacking of Treasury CS Henry Rotich over financial misconduct.

The fall followed uncertainty caused by Monday’s announcement that the Cabinet Secretary would be charged after the Director of Public Prosecutions (DPP) Noordin Haji preferred the charges.

President Uhuru Kenyatta has since appointed Labour Minister Ukur Yatani as acting Treasury CS, a day after the sacked Rotich was charged with corruption.

Traders attributed the drop to uncertainty caused by Monday’s announcement that the ex-finance minister would be barred  from resuming his roles after being charged alongside PS Kamau Thugge. The shilling has lost 0.8 percent since the charges were preferred on Monday, an unprecedented event for a sitting CS . The two officials denied wrongdoing in the infamous Sh21 billion dams scandal.

Bonds maturing in 2028, 2032 and 2048 slipped around 0.5 cents in the dollar, according to data by Tradeweb also declined

The charges against Rotich stem from a police investigation into the misuse of funds in a dam project overseen by the Italian construction company CMC Di Ravenna. The company has also denied any wrongdoing.

Mr Haji said the officials broke the law on public finance management and flouted procurement rules thereby committing illegalities in the Arror and Kimwarer dams project.

He said he has gathered sufficient evidence to prosecute the officers as quickly as possible noting;” The persons we are prosecuting today were mandated to safeguard public interest but failed’.

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