An analysis by Stears attributes the correction to tightening fiscal measures by the Central Bank of Kenya (CBK) and liquidity from the International Monetary Fund injected into the National Treasury as loans.

 “The money market foresees the currency undergoing a correction, gravitating towards its fair value after substantial interventions by the Central Bank, supported by IMF funds to stabilise the foreign exchange rate,” the analysis states.

Compared to March the shilling appreciated in April by 4.4 percent to trade at Sh131.57 against the US dollar.