The Kenyan shilling is among the regional currencies that have shown a rejuvenated growth in the last three months.
According to a report compiled by Cytonn Investments Limited, the local currency has grown by 1.8 percent in a 12-month period and 2.0 percent on a year-to-date basis.
The Ugandan Shilling and its Tanzanian counterpart are ailing, having lost 2.1 and 1.2 percent respectively during the last 12 months and went further down by 1.3 and 1.0 percent respectively on a year-to-date basis.
On the overall, local currencies appreciated slightly due to the improved macroeconomic environment aided by:
~ Recovery from economic shocks that had been occasioned by political uncertainties
~ Improved weather conditions that increased agricultural activities
~ Increased commodity exports that fetched good prices in global markets
There has also been a general weakening of the dollar on the global market. The dollar has shed 2.2 percent on a year-to-date basis.
The South African Rand grew by 12.9 percent in the last 12 months and 4.2 percent on a year-to-date basis.
The Botswana Pula grew by 9.7 percent in the last one year and 3.7 percent on a year-to-date basis.
The Zambian Kwacha shed 0.2 percent in 12 months but increased 3.0 percent on a year-to-date basis while the Ghanaian Cedi lost 2.6 percent in 12 months but added 2.5 percent on a year-to-date basis.
Nigerian Naira is the top loser compared to all other African currency. The naira lost 12.7 percent in 12 months and remained stagnant at 0 percent on a year-to-date basis.
The Malawian Kwacha lost 0.1 percent in 12 months and stagnated at 0 percent on a year-to-date basis.
The Mauritius Rupee grew by 6.5 percent in 12 months but shed 0.2 percent on a year-to-date basis.
At the beginning of the year, various economic analysts had foretold doom for the Kenyan shilling with some such as Cytonn Investments Limited saying that the local currency would dip as low as 107 shillings to the dollar.
As the shilling continues to remain resilient, most analysts still insist that it just but for a short while. Only time will tell. Will the shilling fall from the current grace to grass? Let’s wait.