Summary:
Kenya’s currency weakens against global counterparts, experiencing a significant depreciation in the third quarter of 2023, impacting trade with major currencies and neighbouring nations.
The Kenyan shilling encountered a period of devaluation during the third quarter of 2023, as reported by the Kenya National Bureau of Statistics (KNBS). In comparison to the corresponding quarter in 2022, the currency exhibited a decline against major international trading currencies.
According to the KNBS report , the Kenyan shilling depreciated by 30.3% against the Euro, 29.7% against the Pound Sterling, 20.6% against the US Dollar, and 15.3% against the Japanese Yen. Furthermore, the currency lost value against the South African Rand, Tanzania shilling, and Uganda shilling during this period.
Despite the challenging economic climate, the Central Bank maintained the Central Bank Rate (CBR) at 10.50% throughout the entire third quarter of 2023. This stands in contrast to the previous year, where the rate fluctuated from 7.50% to 8.25% in July, August, and September 2022.
Additionally, the Nairobi Securities Exchange (NSE) 20 Share index, serving as an indicator for the Kenyan stock market, observed a 12.2% decline in Q3 of 2023 compared to the same period in 2022.
These economic indicators portray a complex financial landscape, signaling potential challenges and adjustments in Kenya’s economic trajectory.