Kenya Shilling For First Time Hits Sh116 Against The Dollar

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The shilling closed trading at Sh116.1 to the dollar, compared to Tuesday’s Sh115.99 and has depreciated from Sh113.13 at the start of the year.

The weakening of the shilling has triggered fears of a fresh round of inflationary pressure, which has become a political headache for the government.

The shilling has been on the backfoot since mid-May when it stood at Sh106.40 on the combination of weak inflows and strong dollar demand across sectors, traders said.

Kenya imports a wide range of goods, including petroleum products, wheat, second-hand clothes, motor vehicles, vegetable oils and industrial machinery, whose costs are rising as the shilling weakens against the dollar.

-Business Daily

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