Kenya smallholder tea farmers earn Sh63.6 billion from tea exports
The shilling under pressure from the corporate, says CBK
By Ben Kinyanjui
The Central Bank of Kenya has broken silence over the depreciating shilling saying it had come under increased pressure.
In a brief statement, CBK says the pressure is attributed to seasonal factors as corporations pay out dividends to external shareholders.
“This phenomenon has been observed around this period in the previous years. The current level of foreign exchange reserves of $6.24bn, equivalent to 4.4 months of import cover, are sufficient to provide adequate cushion against temporary shocks,” says the statement.
“In addition, the proceeds from the debut Eurobond will significantly raise the level of foreign reserves with the exchange rate expected to come under pressure to appreciate in the coming months.”
The bank says it expects the situation to normalize as the impact of seasonal factors dissipates though it would continue to monitor developments in the market and stands ready to provide support to minimize the volatility of the exchange rate.