By Patricia Mollyne Mataga
Farmers Party Leader Irungu Nyakera has come out to explain the reasons behind the recent gain of the Kenyan shilling value against the US dollar.
For the last few weeks, the Kenyan shilling has gained massively against the dollar, raising eyebrows amongst a section of Kenyans.
However, those allied to the government, including political leaders have been of the view that it was because of the growth of the economy that has been witnessed under the Kenya Kwanza regime.
Wading into the debate that is not about to go away, Nyakera, an ally of President William Ruto named at least three things he said have contributed to the gain of Kenyan shilling.
The three include the country’s successful acquisition of the Eurobond, increased diaspora remittances and what he described as oversubscription of the Ksh 70 billion infrastructure bond.
The Treasury last month said it had secured the $1.5 billion Eurobond that will mature in 2031.
Since the announcement, the Kenya shilling has gained value to be ranked among the best globally.
“To those who keep asking why the shilling has rallied: – successful issuance of $1.5bn Eurobond ending speculation of default – oversubscription of 70bn (241bn raised) infrastructure bond – increased diaspora remittances – injections from World Bank and IMF – speculators selling their dollars,” the Farmers Party leader said.
“Never bet against Kenya,” he added.
And with the shilling gaining value by the day, Nyakera says it is not yet done.
As of March 20, 2024, one US dollar was trading at Ksh132.5.
“I project we will end April at FX 125 to USD,” noted Nyakera who is also the Kenya Medical Supplies Authority (KEMSA) board chairperson.