NAIROBI: The Kenyan shilling hit its strongest this year on Thursday to bid at 129.50 and while traders said it was due to exporters and non-governmental organisations selling dollars, continuing a rally that began in mid-February.

At 0830 GMT commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Wednesday’s close of 130.50/131.50. It is up 20.7% against the dollar this year.

The shilling last hit its present level on March 17, 2023. “It is just exporters, non-governmental organisations (selling dollars),” a trader at one commercial bank said.

The trader said once the shilling firmed early in the session, it spurred those holding dollars to sell in anticipation it would gain more ground later in the day.

Kenya’s shilling steady, dollar inflows seen from agriculture

The East African economy’s currency has rallied since it successfully issued a new $1.5 billion eurobond in February to finance the partial repurchase of another bond maturing in June despite widespread expectations that it could struggle to access international markets.

Dollar inflows for domestic bond sales in addition to remittances and proceeds from exports in sectors such as agriculture have also boosted the currency.