Treasury Cabinet Secretary John Mbadi has firmly dismissed speculation that the government has been manipulating the Kenyan shilling, following concerns raised by the International Monetary Fund (IMF) over its prolonged stability against the US dollar.
Speaking during a meeting with Swedish Ambassador to Kenya, Håkan Åkesson, on Wednesday, Mbadi attributed the shilling’s steady performance to sound economic management and growing investor confidence rather than interference by the state.
“The stability of the Kenya Shilling is a reflection of prudent macroeconomic stewardship and confidence in Kenya’s economic direction,” Mbadi said, according to a statement from the Treasury.
The ministry noted that the currency’s resilience has been supported by multiple factors, including increased diaspora remittances, stronger export earnings, and ongoing fiscal reforms. One key reform highlighted was the government-to-government (G-to-G) fuel import arrangement, which has eased pressure on the dollar by allowing petroleum imports to be settled in other currencies.
According to official data, diaspora remittances have risen by 8%, while the shilling has remained relatively stable—averaging Ksh129 to the dollar for the past 15 months. Mbadi further pointed out that Kenya’s economy continues to grow at about 5%, with the government targeting 7% growth to accelerate job creation and expand economic opportunities.
He added that this growth is being driven by strong performance in key sectors, consistent with the Bottom-Up Economic Transformation Agenda (BETA) championed by President William Ruto.
IMF Raises Eyebrows Over “Too Stable” Shilling
Despite the government’s explanation, the IMF recently flagged the Kenyan shilling’s minimal fluctuations—ranging between Ksh128 and Ksh131 per dollar—as “unusual” for an open market economy.
KRA Chairperson Nderitu Muriithi confirmed during a Citizen TV interview on Monday, November 4, that IMF officials had questioned the stability during a recent visit to Nairobi.
“They told us the exchange rate is too stable and may be affecting inflation targeting,” Muriithi said.
Meanwhile, Presidential Economic Advisor David Ndii downplayed the IMF’s concerns, describing them as typical economic debates rather than proof of wrongdoing.
“A lot of these debates are what I’d call economic witchcraft — they can go either way. What matters most is pragmatism in policymaking,” Ndii remarked.
The IMF’s comments come nearly two years after the shilling hit a record low of Ksh160 per dollar in early 2024 before recovering to Ksh127 by April that year. Since then, the currency has maintained its current range, fueling speculation—but also underscoring Kenya’s renewed economic confidence.