Ruto's Dollar Influx From US Trip Expected To Strengthen Shilling Even Further

• President William Ruto jetted back into the country on Saturday, May 25, after securing billions of dollars in investments from his US state visit
• Central Bank of Kenya (CBK) reported that the shilling remained strong against the US dollar and other global currencies as of Thursday, May 23
• FXPesa market analyst Rufas Kamau explained to TUKO.co.ke that the shilling could further regain as Ruto's US investment funds start to come in

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Central Bank of Kenya (CBK) remains hopeful that the shilling will continue to regain against major international currencies.

Why CBK expects further strengthening of shilling

CBK reported that the shilling traded at KSh 131.36 per US dollar as of Thursday, May 23.

The regulator noted that the country's foreign exchange reserves are enough to push imports up to four months.

"Usable foreign exchange reserves remained adequate at USD 6,989 million (3.7 months of import cover) during the same period," said CBK.

How Ruto's US visit could strengthen Kenya shilling

In an exclusive interview with TUKO.co.ke, a market analyst at FXPesa, Rufas Kamau, noted that CBK predictions could come true as the country gets more foreign investments.

Kamau explained that President William Ruto's US state visit is significant in increasing CBK's foreign exchange reserves, thus improving the shilling in the forex market.

"After the president's visit to the USA, expect more USD inflows and this could strengthen the Kenya shilling further towards 120," said Kamau.

Ruto finalised his four-day US state visit and jetted back to the country on Saturday, May 23.

The head of state and his entourage are poised to have brought back home multimillion-dollar investments and deals.

The president secured funding support for key projects, including the construction of the Nairobi-Mombasa Expressway and the Affordable Housing scheme.

Others included deals like the KSh 23 billion Coca-Cola investment that will see a KSh 175 million new beverage plant built in Nairobi.

What to know about shilling strength

• The World Bank attributed the rise in the value of the shilling to the hike of the base lending rate by the Central Bank of Kenya (CBK).
• In February 2024, Kenya recorded a continued inflow of foreign currency, which played a vital role in propping up the shilling against the US dollar.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke