Treasury Cabinet Secretary John Mbadi has said the government would not allow the Kenyan currency to strengthen further against the United States dollar.
Mbadi, while appearing before the Parliamentary Budget and Appropriations Committee on Thursday, March 27, noted that a stronger shilling could discourage exports.
According to the finance minister, fewer exports could significantly impact foreign exchange reserves and expose the country to economic vulnerability. "We cannot allow the shilling to appreciate too much; we assess that the shilling at 130 units is the most reasonable for our economy because if you make the shilling too strong, you discourage exports," Mbadi said.
A photo depicting a person holding Kenya Shilling notes and US Dollar notes Photo Janta Kenya "The moment you discourage exports, you will not have foreign exchange reserves, and you will be more exposed because now you cannot even pay your debts," he added.
