Kenyan shilling set to strengthen, says official

08/09/2011 - Kenya property & investment news Posted by Bob Brunskill
Kenyan shilling set to strengthen, says official

Kenya's shilling is expected to strengthen as the government improves communication with financial markets, according to a senior Finance Ministry official.Geoffrey Mwau, the ministry's economic secretary, told reporters in Nairobi that providing the government coordinates its policy direction, "while at the same time engages the financial sector players, we are going to see the exchange rate getting stronger".Mr Mwau said that increasing revenue from exports and tourism may also help the currency gain.Last month, Kenya's central bank raised the cost of borrowing via its discount window to support the economy, which led to inter-bank lending rates to a 12-year high of 28.44 per cent.But after the central bank reversed some of the increase on August 29th, the average rate lenders charge each other fell to 8.82 per cent yesterday (September 8th)."What we don't want to see is huge fluctuations or huge jumps in the exchange rate," Mr Mwau said. "You need predictability."