President William Ruto announced on Wednesday, February 14, 2024, in Murang’a County, that the Kenyan Shilling is poised to achieve unprecedented strength, a feat never witnessed before.
Addressing the public, President Ruto provided assurance regarding the imminent strengthening of the national currency. He remarked, “I want to assure you that the shilling has been stabilizing; you all saw where the dollar was. But it will strengthen to levels never seen before.”
This declaration comes in response to recent fluctuations in the currency’s value. On January 15, the shilling experienced a significant decline, reaching a historic low of over 160 unit points against the US dollar. However, in a remarkable reversal, the Kenyan Shilling has seen a recent upswing, with the current exchange rate standing at 156.70 per US dollar, according to the Central Bank of Kenya.
President Ruto also addressed concerns regarding the country’s debt situation, reiterating his commitment to averting a financial crisis. He stated, “You have seen the other day we have put enough money to help us pay our debts.” This statement follows the successful issuance of a new Eurobond valued at $1.5 billion (Sh238 billion), a strategic move aimed at managing the nation’s financial obligations.
The National Treasury has confirmed that the new loan, structured into three installments with an average life of six years, is anticipated to mature in 2031. Notably, the bond is priced at 10.37 percent, marking the highest rate ever offered by an African state.
