The Kenyan Shilling holds steady despite the surge in the dollar following Trump’s victory.

On Thursday, November 7, the Kenyan Shilling maintained its stability against major international currencies, including the US Dollar, despite expectations of a slight dip following the US elections.

The Shilling’s resilience was bolstered by a steady supply of foreign exchange from the tourism sector, which had previously been impacted by post-COVID challenges and election-related disruptions.

According to the Central Bank of Kenya (CBK), the Shilling traded at Ksh 129.1 against the US Dollar, remaining within the Ksh 129 range that has been consistent over the past month. On Wednesday, the Shilling even gained Ksh 0.05 or 0.02%, defying the global trend as the US Dollar strengthened.

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Tea exports also played a role in supporting the Shilling, despite delays in exports and tax clearance issues that have led to excess tea reserves.

Tourism continued to support the currency, with the approach of the December holidays driving up foreign currency exchanges as visitors converted their dollars into Kenyan Shillings for spending in the country.

The manufacturing sector also contributed to the Shilling’s strength, with demand remaining high despite shocks in global stock markets. Additionally, the oil sector supported the currency, with stable fuel prices following easing tensions in the Middle East. This stability was further enhanced by the Organization of the Petroleum Exporting Countries (OPEC) delaying a decision on raising production, maintaining a 2% increase until their December meeting.

Earlier predictions suggested the Shilling would follow stock market trends, which had been relatively stable while investors awaited the US election results.

Overall, the Shilling has shown strong performance throughout the year, recovering from a poor start. Its stability has been supported by increased foreign exchange reserves in the CBK and a rise in diaspora remittances. In a report dated October 25, the CBK revealed that September 2024 remittance inflows totaled USD 418.5 million (Ksh 54 billion), up 22.9% from the previous year’s USD 340.4 million (Ksh 44 billion).