DP Gachagua tells Kenyans to sell dollars amid surging shilling

Deputy President Rigathi Gachagua has advised Kenyans who have been holding on to U.S. dollars to sell them immediately to avoid potential losses, following the Wednesday appreciation of the Kenyan Shilling against the foreign currency.

Speaking in Kandara, Murang'a County, on Thursday, Gachagua, who attributed the gain to President William Ruto's intervention, hinted at the likelihood of the Kenyan Shilling gaining further value against the dollar in coming months, while encouraging Kenyans to reduce their reliance on the currency.

"Rais amepanga kazi, dola imeteremka. Sasa wale wako na dola wanakimbia kwa bank kuuza haraka. Leo imeteremka mpaka 137. Huyu Rais vile amepanga, hii dola muuze leo, kesho na kesho kutwa, msipouza mtaenda hasara kubwa sana," he said.

"Hii dola vile naona rais anapanga itafika mia moja. Wale ambao wamebakisha dola mkimbie haraka msiende hasara."

According to Reuters, the Kenyan shilling gave up some of its gains following intervention by the Central Bank of Kenya (CBK), which bought dollars to mitigate volatility as the currency reached its highest level since June 2023.

CBK says it only intervenes to smooth out volatility when the shilling is moving too fast in either direction.

Commercial banks on Thursday quoted the shilling at 145.00/146.00 to the U.S. dollar, up more than 3% on Wednesday's closing rate of 150.00/151.00.

At one point, the Shilling was up almost 8% on the day, bid as strong as 139.00 to the U.S. dollar, in a rally fuelled by foreign inflows into Kenyan domestic debt and the resolution of a $2 billion (Ksh.291 billion) Eurobond maturing in June.