Home Economy Foreign currency deposits in Kenyan banks hit all-time high

Foreign currency deposits in Kenyan banks hit all-time high

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By Business Daily Africa

Foreign currency deposits in Kenyan banks hit an all-time high in February, as the depreciating shilling boosted the value of dollar holdings.

The value of foreign currencies was registered at KSh804.31 billion in February from KSh793.26 billion in January.

The Kenyan shilling has depreciated to record lows against the greenback and other major currencies on the back of a fast-rising import bill that has outstripped earnings from exports, diaspora remittances and the tourism sector.

The shilling was exchanging at an average 115.44 units to the dollar on Thursday, having depreciated by 2.03 percent from 113.14 at the start of the year.

The rise in foreign currency deposits has hurt local businesses that are now struggling to make timely payments for shipments.

“Many of our members have had challenges accessing US dollars from their banks to meet their international commitments in a timely manner… Liquidity in the market is…

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