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Shilling stays bouyant through election week

The Kenyan shilling has been more resilient against major world currencies during this
year’s election week compared to the previous general election.

The latest data from
the Central Bank of Kenya (CBK) shows that the shilling appreciated
against the Sterling Pound and Euro but slightly depreciated against
the green back in the week starting August 3 to yesterday when the
Independent Election and Boundaries Board (IEBC) results indicated the sitting president Uhuru
Kenyatta was in the lead.

The Pound
which traded at the high of Sh137.33 on August 3 depreciated by a
shilling a day later to trade at Sh136.28 before further dropping to
Sh135.85 and Sh135.24 on August 7 and 9 respectively.
Yesterday, the Sterling Pound was trading at an average of sh134.91

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The Euro on the
other hand depreciated from Sh123.04 on August 3 to Sh122.93 on
August 7, the eve of the nation’s general elections. The
depreciation continued after the polls to Sh122.46 on August 9.
Yesterday morning, it slightly gained a cent pending the announcement
of the presidential results.

The Kenyan
shilling marginally deprecated against the US dollar through this week, moving from Sh103.85 on August 3 to Sh103.88 and
Sh103.90 on August 7 and 9 respectively.
The shilling however appreciated by a cent yesterday against the
greenback to Sh103.89.

In the last election week
of 2013, the shilling fluctuated against all major currencies,
shedding Sh0.13 from March 5, a day after elections, to post an average
of Sh68.26 on March 8 when the election board declared Uhuru
Kenyatta as the president elect.

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It also appreciated
against the Euro which was trading at an average price of Sh112.32 on
5 March to post trade at Sh112.99 on March 8.

The shilling however
showed some resilience against the starling pound during the same
period, trading at an average price of Sh129.99 on March 8 from
Sh130.21 on the fifth day of the month.

In the 2007 general
elections, the Shilling which was going at an average price of
Sh61.79 against the dollar shed 4.3 per cent the following week to
bid and sell at Sh66.60 and Sh66.90.

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Aly-Khan Satchu, a financial analyst expects the shilling to stabilise further, after the international community gave the just concluded
general elections a clean bill of health.

He said the
shilling has been the alpha Sub Saharan Africa (SSA) currency for
quite a while, attributing this to Jubilee administration’s free
market policy

”I expect a Tsunami
of money to flood in and further support the shilling,” said Satchu in an interview with the Star.

Unlike previous
election years where some countries imposed a travel bans, Kenya
recorded high foreign investments with companies like Volkswagen returning after four decades just a few months to election day.

Power is with the people, not politicians – Nick Ndeda

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