Shilling stability under threat as economic pressures mount

The shilling is expected to weaken against the US dollar to about Sh134 next year on the back of increased imports and higher costs for servicing foreign public debt.

Seven global institutions tracking Kenya’s macroeconomic position such as Oxford Economics, Standard Chartered and Citigroup Global Markets see sustained calmness in the foreign exchange market for nearly one and a half years coming under threat in coming months due to mounting pressure on Kenya’s dollar reserves.