- The Kenya shilling has remained stable in 2024, recording gains against the United States (US) dollar and other world currencies
- On Tuesday, August 27, the Central Bank of Kenya quoted the shilling at 129.17 against the US dollar and 144.25 against the Euro
- FX Pesa lead market analyst Rufas Kamau explained to TUKO.co.ke that a strong shilling encourages multinationals to invest in the NSE
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.
The strengthening of the Kenyan shilling in the first six months of the year has seen Nairobi Securities Exchange (NSE) listed firms with dollar-denominated loans gain KSh 6.2 billion.
Which NSE-listed firms reported gains?
During the same period in 2023, the firms recorded a KSh 15.9 billion loss, attributed to the weak local currency against the United States (US) dollar.
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According to Daily Nation, the firms include Umeme, Sameer Africa, Kenya Airways, Car and General and TPS Eastern Africa.
FX Pesa lead market analyst Rufas Kamau explained to TUKO.co.ke that a strong shilling encourages multinationals to invest in the NSE.
"It's a welcome boost of confidence that will encourage other investors to invest in Kenya. This could significantly boost foreign direct investments and shore up our foreign currency reserves," Kamau said.
On Tuesday, August 27, the Central Bank of Kenya quoted the shilling at 129.17 against the US dollar. The shilling has appreciated by over 9% since July 2023.
What was Kenya Airways's profit?
Kenya Airways reported a profit after tax of KSh 513 million for the half-year ending June 2024.
This was a major turnaround from a KSh 23.7 billion loss during the same period in 2023.
This marks the airline's first profitable half-year results in a decade. The last recorded profit was KSh 384 million in 2014.
The airline's chief executive officer, Allan Kilavuka, attributed the profitability to growth in the cargo sector, stabilisation of the Kenya shilling, and increased overall traffic.
What was NCBA Bank's profit?
In other news, NCBA Group PLC reported a profit after tax of KSh 9.8 billion for the first half of 2024, marking a 5.0% increase compared to the same period in 2023.
Customer deposits grew by 2.4% year-on-year to KSh 529 billion, while total assets increased by 4.3% to KSh 689 billion.
NCBA's board of directors approved an interim dividend of KSh 2.25 per ordinary share, reflecting the bank's solid financial performance.
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
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