Kenya Shilling Strengthens Against US Dollar on Diaspora Inflows Support

The Kenyan shilling strengthened against the US dollar on Friday, supported by remittances by Kenyans in the diaspora and foreign investors in government securities.

The shilling traded at 100.55 on average in the interbank market compared to average of 100.70 in the previous day.

Traders said the increase in inflows was boosted by easing of end month dollar demand from importers looking to settle obligations with foreign suppliers, which normally weigh on the shilling.

"The recovery of the shilling was evident after demand for the greenback by interbank and corporate players subsided, pushing the exchange rate marginally lower,” said Commercial Bank of Africa in a market note.

The shilling is one of the few global currencies that have gained against the dollar, with many regional peers posing significant depreciation.