The Kenyan shilling fell to an all-time low of 150 against the US dollar on Monday.
This situation has increased the pressure and caused a decrease in foreign exchange reserves in Kenya and increased the cost of imports amid an increase in inflation.
The Central Bank of Kenya (CBK) pegged the shilling to the dollar at 149.94 on Monday, marking a 24 percent decline in the value of the Kenyan shilling this year.
Foreign exchange reserves on October 19 reached a record low of 6.83 billion US dollars, which accounted for 3.67 months of imports, down from 7.29 billion dollars a year ago.
The central bank, in its latest financial sector stability report released on October 15, blamed the decline in the Kenyan currency on “rapid monetary policy tightening that pushed international interest rates higher.”
According to the central bank, the Kenyan currency has depreciated over time against major international and regional currencies, trading against the pound at a low of 182.08 shillings and the euro at 158.54 shillings on Monday.
Inflation in the country rose to 6.8 percent in September, the first increase since May, from 6.7 percent in August.
