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Economy

Free fall? Kenyan Shilling officially breaches 150 mark against the US dollar

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The official exchange rate of the shilling against the dollar has crossed the 150 mark, after a prolonged and steady depreciation phase that reduced the difference between the official and retail selling rates of the US currency.

The shilling has lost 17.7 per cent of its value against the US dollar since the year began, more than twice as much as it lost 8.3 per cent of its value against the US dollar in 2022 overall.

The dollar purchasing rate was recorded at 149.84 shillings and the selling rate at 150.04 shillings units, or an average of 149.94 units, according to the Central Bank of Kenya’s (CBK) indicative rate that was released on Monday morning. The spot rate, or average, increased to Sh150.03 by the afternoon.

The retail and interbank markets, however, provide a different picture.

Twelve commercial lenders, including all nine of the top banks, were found to be selling dollars at a rate between 154.95 and 157 shillings and buying them at a rate between 141 and 149.95 shillings, according to a spot check conducted in their banking halls.

Bureaus de change, meanwhile, quoted the dollar as buying for between 152 and 153 shillings and selling between 156.50 and 157 shillings.

On September 27, Treasury CS Professor Njuguna Ndung’u testified before the National Assembly that the recent decline in the value of the shilling was a result of a “adjustment process” stemming from past policy errors in shilling management.

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Economy

Kenya, Ghana secure Ksh1.5B from US to improve soil quality

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The US Department of State has granted Ksh1.5 billion to Kenya and Ghana to improve the condition of their soil.

This cash infusion arrives just hours after Kenya’s agriculture sector was intended to be strengthened and its health system modernized with a Ksh38.8 billion acquisition from India.

The Food and Agriculture Organization of the United Nations (FAO) said in a statement that the money that has been given to both nations is intended to be used for mapping soil fertility.

“The Food and Agriculture Organization of the United Nations (FAO) has welcomed the announcement of an additional $10 million from the United States Department of State for projects mapping soil fertility in Ghana and Kenya to promote climate-smart agriculture and adaptation measures, resilient crops, fertilizer use efficiency, and soil health,” FAO stated.

FAO Deputy Director-General, Maria Helena Semedo, said the financial support is expected to have a far-reaching impact on local farmers and communities.

“Not only will the additional funding from the United States bring the benefits of this project to smallholder farmers and their communities in two more countries, but it also underlines the vital role that healthy and fertile soils play in building resilience to the impacts of climate change and in transforming our agrifood systems,” Semedo stated.

Kenya was promised Ksh38.3 billion by Indian Prime Minister Narendra Modi to support its modern health system and agriculture industry.

The money set aside for modernizing Kenyan farming methods will be mostly used for healthcare treatments and agricultural mechanization.

Hussein Mohamed, the spokeswoman at the State House, shared a statement from President William Ruto thanking him for the support.

Ruto promised to quickly start implementing previously decided projects in order to make the best use of the funding.

“I thank you, Prime Minister, for the consideration of the US$250 million for supporting Kenya in the space of agricultural mechanization and the whole space of vaccines and other interventions. I want to assure you that we will immediately embark on programs that have already been agreed on so that we can leverage this facility to provide much-needed services for the people of Kenya,” Ruto affirmed.

 

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Economy

Dress down: Felix Koskei injects style into civil service

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Head of Public Service, Felix Koskei, has issued a groundbreaking directive urging civil servants to ditch the typical formal attire in favor of a more casual and stylish dress code.

The move comes as Kenya prepares to host the Africa YouthConnekt Summit from December 8-11, aiming to inject vibrancy and inclusivity into the workplace.

The goal of the directive is to revitalize the formal dress code and promote a more laid-back and welcoming environment in the public sector during this time.

This creative program asks civil personnel to wear the jerseys of their favorite Kenyan or African sports teams as a way to show off their patriotism.

The directive seeks to foster unity and celebrate the quality of African sports, whether it is in athletics, football, volleyball, rugby, or Shujaa for lovers of each sport.

The directive intends to foster togetherness and celebrate the quality of African sports, whether it is in athletics, football, volleyball, rugby, or Shujaa for passionate followers of football, basketball, or malkia for volleyball.

“Starting tomorrow until Jamhuri Day (December 12), let’s embrace dress down, stylish, and presentable casual wear, amplifying the Africa YouthConnekt Summit vibes that we’re proudly hosting from Dec. 8-11. Show your spirit by donning a jersey from your favorite Kenyan or African team – whether it’s Athletics, Harambee Stars, Shujaa, or Malkia. Let’s rock those jerseys with pride! @YouthConnektAf,” Mr. Koskei tweeted.

The Head of Public Service emphasized that attire will play a key role in expressing the collective spirit, urging civil servants to “show your spirit by donning a jersey from your favorite Kenyan or African team – whether it’s Athletics, Harambee Stars, Shujaa, or Malkia.”

Kenya will mark its 60th anniversary on December 12, and the celebration theme, “Kenya, Youth, Creative Economy, and Sports,” is set to infuse energy into the country.

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County News

MPs decry delay of Mt Kenya projects

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Two Members of the Parliament from the Mt Kenya region have raised concern over the delay in the completion of the Mau Mau link road.

Kangema MP Peter Kihungi and his Juja counterpart George Koimburi on Sunday asked Treasury to release funds for the completion of the road that links Murang’a, Kiambu, Nyeri and Nyandarua counties.

They said that in the recent supplementary budget, the amount allocated to the road was slashed from Sh280 million to Sh175 million.

They said the Jubilee administration had allocated the project Sh4.5 billion and substantial work had been done on the ground. Kihungi said road is of immense economic importance to the local community and the country. “Residents are very much concerned about the progress of the road.

The construction during the previous government was going on well and we are worried since in the current budget Sh280 million was allocated but when it came to the supplementary budget the money was cut by more than half to Sh175 million which can hardly do much,” said Kihungi. Koimburi (pictured) said they promised their people that the Mau Mau Road would be completed once the Kenya Kwanza government assumed office.

“We want to ask the Transport CS Kipchumba Murkomen to ensure money is allocated for roads being done in Mt Kenya. Residents are eagerly waiting for completion of these roads which are expected to spur the local economy,” he said

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