As of December 21, 2024, the Kenyan shilling has maintained stability against the US dollar, trading at KSh 129.29 on November 19, 2024, and slightly fluctuating to KSh 129.31 by December 11, 2024 [6bba9af1]. This stability is attributed to a significant increase in diaspora remittances, which rose by 19.2% in November 2024, amounting to KSh 54.7 billion (approximately $423.2 million) [6bba9af1]. The Central Bank of Kenya (CBK) reported that the US accounted for 53.4% of these remittances, highlighting the importance of overseas contributions to the Kenyan economy [6bba9af1].
Additionally, the CBK's usable foreign exchange reserves stood at KSh 1.2 trillion (USD 9,010 million) as of December 19, 2024, providing a robust cover of 4.6 months for imports [6bba9af1]. Governor Kamau Thugge emphasized that the stability of the shilling against major currencies has helped mitigate the impact of rising dollar-denominated external debt, reinforcing the financial health of the country [6bba9af1].
In contrast, the Tanzanian shilling has also shown remarkable strength against the US dollar, trading at Sh2,294 by December 13, 2024, following a low of Sh2,513.1169 per dollar earlier in the month [b8bd6828]. This upward trend is attributed to the stabilization of the US economy and lower interest rates, which have increased the supply of US dollars in the market [b8bd6828]. The Tanzanian shilling's performance against the Euro and British pound has also been strong, trading at Sh2,406 and Sh2,919, respectively [b8bd6828].
Both currencies reflect the broader economic dynamics within East Africa, where the Kenyan shilling's stability amid rising remittances contrasts with the Tanzanian shilling's recent gains. Analysts suggest that the ongoing economic reforms in Tanzania and the resilience of the Kenyan economy through remittances will continue to shape the financial landscape in the region [b8bd6828][6bba9af1].